Time Value of Money

[Kidlicious]

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.

The price of the tomatoes WILL fall if you produce more of them.

[Kidlicious]

[QUOTE] Originally posted by Flip McWho
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.
[\QUOTE]
Nope. Money doesn't have to exchange hands.

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

Yep, desire is a requirement, however, it's a requirement that we don't have to worry about. There's more than enough of it. Work, on the other hand is something that we never have enough of.

[Flip McWho]

Yeah its good entertainment, and procrastination too.

It took me the second try to get that. I really don't see how the cost of the cow doubles when the cow making didn't change.

[Kidlicious]

Originally posted by Flip McWho
Yeah its good entertainment, and procrastination too.

It took me the second try to get that. I really don't see how the cost of the cow doubles when the cow making didn't change.

It's supply and demand. To sell more tomatoes you have to lower the price.

btw, I'm going to get back to the savings thing tomorrow. I want to do some refreshing on that.

[Flip McWho]

The price of the tomatoes WILL fall if you produce more of them.

Ok in this instance thats true. More tomatoes then want for tomatoes means to sell tomatoes price must fall.

Work, on the other hand is something that we never have enough of.

Ok granted. But thats gotta do with it how?

[Flip McWho]

I want to do some refreshing on that.

Damn your actually researching this??

[Solomwi]

That assumes that someone else has my innovative new tomato-maker, or that I don't just use it to half the time I spend making tomatoes, and keep production constant.

[Kidlicious]

Originally posted by Flip McWho
Ok granted. But thats gotta do with it how?

It doesn't make any sense to say that desire is creating value if there is already plenty of it. The limiting factor is work so if we increase work we increase value. The same is not true for desire. Increasing desire does not increase value, because we already had desires that were going unfullfilled.

[Kidlicious]

Originally posted by Flip McWho


Damn your actually researching this??

I will have to read some Keynes to refresh my memory if we are going to get into financial markets more.

[Flip McWho]

It doesn't make any sense to say that desire is creating value if there is already plenty of it. The limiting factor is work so if we increase work we increase value. The same is not true for desire. Increasing desire does not increase value, because we already had desires that were going unfullfilled.

Ok I can see your logic in there. And wouldn't increasing work decrease value using

The price of the tomatoes WILL fall if you produce more of them.

The value of work will decrease if you have more work.

[Flip McWho]

[QUOTE]I will have to read some Keynes to refresh my memory if we are going to get into financial markets more.[QUOTE]

Yeah I'm trying to work off two year old memory of high school economics

[Japher]

I haven't taken economics since 1993...

Though I play the markets a lot and study a lot about personal finances... which has nothing to do with macro economics. Still, if DanS agrees with me, I know it's right. Him and Adam Smith.

[FredKarno]

clever long thead that Marx would have loved

Marx was a power-mad-nutter.
Money. A tool. Impossible to imagine 'civilisation' evolving without it.
Like all tools, subject to abuse and misuse. Witness this thread!
Like all tools, it is about power. This money not simple tool. Therfore very complex arguments about it.
Like it or not, the worship of power overrides all. You who argue about this money tool without considering the worship of power are fools.
Those who deride money the most are socialists who worship power the most!

[Kuciwalker]

Originally posted by Odin
The Supply/Demand economic system is a form of rationing (supply goes down, price goes up). This is fine now, but in the future, when improvements in technology causes things too be made more cheaply and causes unemployment as things become more automanted things will come to a head.

You mean like how the industrial revolution caused everyone to become unemployed and now we live in a communist paradise?

[Kuciwalker]

Originally posted by Kidicious
This all has nothing to do with the subject. If you invest the money then you can buy more candy in the future, because you get a return on your investment. Did your money create candy bars? As Shogun has stated, "of course not."

Your money did not create candy bars, in the sense that little green slips of paper do not create candy bars, nor do bits in a computer in a bank.

However, money effectively equals capital or labor (in that it can be freely exchanged for either), and both of those DO create candy bars. Therefore, your money effectively creates candy bars.