Time Value of Money

[Kidlicious]

Originally posted by David Floyd
So what? You're ignoring the issue. The specialist perceived that there was a value in laboring for a certain purpose, in exchange for a certain wage.

While you might think that he misjudged value, the specialist doesn't care. The company paying him doesn't care what you think, either, because the only thing relevant about value is what the two contracting parties agree on.

That's only relevant to you because it fits your world view. You put blinders on to other value created.

[David Floyd]

But what value is created? And how is that relevant? You still haven't established how any absolute measure of value can be ascertained.

It's really quite simple, and EVERYONE here agrees with this. EVERYONE. Value is relative, and based on things such as supply and demand and agreements between the buyer and seller, or employer and employee.

Nothing else makes any sense, in the context of reality.

And by the way, you said there was nothing wrong with my argument, but you wouldn't respond to it unless I tied it into the debate. Well, I certainly tied it into the debate, so why don't you respond to it.

Except wait, you already did - you said there was nothing wrong with it. And there's not, it makes perfect sense, as pretty much anyone will tell you.

[Kidlicious]

Originally posted by Flip McWho


They'd be all dead now though, so hey. Everyone now virtually works to get paid to pay for their wants according to a price set in the market.

Most people do, yes.

[Kidlicious]

DF,

How is it tied it? Sorry for giving you short answers, but I don't want to go down the same road already traveled many times.

[Kidlicious]

Originally posted by David Floyd
But what value is created? And how is that relevant? You still haven't established how any absolute measure of value can be ascertained.

When you make your pancakes in the morning, do you measure them to make sure that you are the one who made them?

[David Floyd]

How is it tied it? Sorry for giving you short answers, but I don't want to go down the same road already traveled many times.

How is my example tied to value creation? Because it IS! The specialist decided that there was value in the job offer, so he took the job. The company decided there was in value in making the offer, so they made it.

When you make your pancakes in the morning, do you measure them to make sure that you are the one who made them?

How would measuring the pancakes tell me who made them? Besides, I don't eat breakfast, or at least don't cook breakfast. If I eat it, I go out, and pay a fee in exchange for goods/services, because I see a value in that.

In any case, that's a stupid question. Were I to make pancakes in the morning, the only thing I would care about is whether or not they tasted good. The question is also irrelevant to the topic.

[David Floyd]

OK, here's your original post about pancakes:

If I want pancakes. I make pancakes. My desire doesn't make the pancakes. The value is in the satisfying of the desire. The desire doesn't satisfy itself. I satisfy it by my work.

Your work to make pancakes is only possible because you can afford the materials to make pancakes. Further, you're right, you see a value in satisfying your desire. But if the materials for pancakes cost, say, $30, you probably wouldn't see a value in making them, would you? On the other hand, someone who made $2 million/year and loved pancakes probably WOULD see a value in making pancakes for $30 a batch, right?

The point is, you DO see a value in laboring to fulfill your desire, but the labor you will perform to fulfill that desire is different than the labor other people will perform, or the money you will spend to create value is different from the amount others will spend. That's just plain obvious, and it shows that value is created by perception.

[Saras]

Let's see if Kidicious still has me on ignore.

[Ted Striker]

Why you guys eating pancakes anyway?

They will make you fat and wobbly.

[David Floyd]

Not me. I have an extremely high metabolism.

[Ted Striker]

You're still young though

[David Floyd]

True.

[Flip McWho]

Do high metabolisms die as you get older?

David Floyd you may carry the torch further in this debate. I'm busy for tonight.

Kid, I'll keep an eye on the thread if you wanna start talking financial markets.

[Saras]

Yea kid, post us a derivation of the Black-Scholes formula how YOU undertand it

[David Floyd]

David Floyd you may carry the torch further in this debate. I'm busy for tonight.

Seems as if Kid has abandoned it. Oh well. Kind of hard to defend a position that liberals, conservatives, and Libertarians all oppose