Time Value of Money

[Flip McWho]

If I want pancakes.

You wanted pancakes. Therefore you desired pancakes. Your desire made you get up and make pancakes. And your desire was satiated when you made and ate pancakes.

Also what value would you attribute to the making of pancakes?

[Flip McWho]

We can never satisfy all of our wants because of the limitations of value.

Explain?

[Kidlicious]

Originally posted by Flip McWho
Take for example say somebody who sells car stereos in ummmm the middle of the Amazon. They are working away selling car stereos but there is noone about to buy them. Therefore he makes no money and his work is not valued.

His work has no value because he doesn't produce anything. He only sells things.

Or possibly a better example, a factory produces a new kinda of candy bar. Unfortunately for the company nobody likes this new candy bar. So no candy bars sell. The company makes no money and declares bankruptcy. The workers who worked don't get paid. Therefore there work had no value to them.

Ah, true, but that doesn't mean that the candy bars had no value. The candy bars very well could have satisfied a desire, but the price was too high. Value has absolutely nothing to do with exchange or price.

[Kidlicious]

Originally posted by Flip McWho
You wanted pancakes. Therefore you desired pancakes. Your desire made you get up and make pancakes. And your desire was satiated when you made and ate pancakes.

Nope. I desire pancakes now as a matter of fact, but I'm at school where I can't get pancakes. The value is only created if I make the pancakes.

Also what value would you attribute to the making of pancakes?

I have no idea. That doesn't concern me. Why does it concern you?

[Flip McWho]

Ah, true, but that doesn't mean that the candy bars had no value. The candy bars very well could have satisfied a desire, but the price was too high. Value has absolutely nothing to do with exchange or price.

I didn't mention the price of the candy bar. Just that nobody liked the candy bar. Or rather nobody desired to have the candy bar.

[Flubber]

Originally posted by Kidicious

His work has no value because he doesn't produce anything. He only sells things.
.

Don't be petty-- Imagine he BUILDS a commodity worthless where it is-- For the prefection of the example imagine it would cost more to transport the item than it could be sold for.

[Kidlicious]

Originally posted by Flip McWho


I didn't mention the price of the candy bar. Just that nobody liked the candy bar. Or rather nobody desired to have the candy bar.

Of course there is no value to things that no one wants at all.

[Japher]

Than value isn't equal to the amount of work that is put into, it also requires desire or a market.

[Flip McWho]

So there is no inherent time value to money then.

[Flip McWho]

I think you just shot your own argument in the foot.

[Kidlicious]

Originally posted by Flip McWho

We can never satisfy all of our wants because of the limitations of value.

Explain?

Value is limited to the amount of goods in the economiy. Our desires are practically limitless.

[Kidlicious]

Originally posted by Japher
Than value isn't equal to the amount of work that is put into, it also requires desire or a market.

Yep

[Flip McWho]

Value is limited to the amount of goods in the economiy. Our desires are practically limitless.

Yes granted. But then doesn't it follow that our desires for these limited goods/services mean that our desires set their value as we compete with each other to fulfill said desires?

[Kidlicious]

Originally posted by Flip McWho
I think you just shot your own argument in the foot.

Who? Japher?

[Flip McWho]

Of course there is no value to things that no one wants at all.

If somebody puts in the work and nobody wants the product then that work is valueless correct?