Time Value of Money

[Flip McWho]

I think it might be mathematical notation.

[Japher]

yeah, something ain't right... I'll mull it over.

I did mean -work
a second boundry condition would exist of

0

[Japher]

damn it ain't working!

- work < unknown < 0

and 2nd

0 < unknown < ?

[Kidlicious]

Originally posted by Flip McWho
So how are we supposed to know whether to attribute value to some work? Through our desires for that work.

Yes.

Following from this our desires for a product only stretch as far as our ability to get the product.

No. Why? Desires are greater than value. Value is created when we satisfy a desire. Potential value is stored in goods that may be able to satisfy a desire in the future.

In this society that requires money. Therefore our desires create price which in turn create value.

Oh dear. See where this has got you. I've already established that value can be created independent of any price with the pancakes example.

[Kidlicious]

you can't use the greater than or less than signs. I've run into that problem before.

[Kidlicious]

Originally posted by Flip McWho
Yeah it would stagnate. But I was just pointing out that some savings goes back out into the economy in the form of bank loans. Why do you think banks crash when everyone goes in and tries to draw all their money out at the same time?


EDIT: Bad sentence structure.

Yes, they crash, but what causes the economic catastrophe is the decrease in spending.

[Flip McWho]

Oh dear. See where this has got you. I've already established that value can be created independent of any price with the pancakes example.

Yes you have but thats in the individual case, where your own work goes towards satisfying your own desires. What about work that is for other people.

No. Why? Desires are greater than value. Value is created when we satisfy a desire. Potential value is stored in goods that may be able to satisfy a desire in the future.

Ok yes true. Desires + Unknown = value

[Flip McWho]

Yes, they crash, but what causes the economic catastrophe is the decrease in spending.

Yeah ok, I agree with you that spending promotes work.

[Kidlicious]

Originally posted by Flip McWho
Yes you have but thats in the individual case, where your own work goes towards satisfying your own desires. What about work that is for other people.

What about it? If I created value by satisfying my own desire, then why are you saying that I'm not creating value by satisfying your desire?

Ok yes true. Desires + Unknown = value

I don't know where you guys are trying to go with these equations, but it doesn't look like you are establishing that desire creates value. Just because something is greater than something else doesn't mean that it creates it.

[Kidlicious]

Originally posted by Flip McWho


Yeah ok, I agree with you that spending promotes work.

Ok, I want to go somewhere with this, but I want to go to the store right now, and then I will probably go to class.

[Flip McWho]

If I created value by satisfying my own desire, then why are you saying that I'm not creating value by satisfying your desire?

You are on both counts. However satisfying your desire doesn't result in money being exchanged. Money has to be exchanged when your work satisfies somebody else's desire.

Desire is just one aspect that goes towards establishing that value.

[Flip McWho]

Ok, I want to go somewhere with this, but I want to go to the store right now, and then I will probably go to class.

Sweet. I'll eargely await your return. I must also depart to to the CBD of this town. Thankfully I have no class today.

[Japher]

If you really want to get him going, Flip, get on about innovations. He believes if you develop away to create more tomatoes in the same amount of time than the cost of the cow cost twice as many tomatoes.

[Solomwi]

Originally posted by Japher
If you really want to get him going, Flip, get on about innovations. He believes if you develop away to create more tomatoes in the same amount of time than the cost of the cow cost twice as many tomatoes.

God help me, I followed that flawlessly the first time through.

[Japher]

I think I continue with Kid just to entertain myself