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MichaeltheGreat
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Apolyton Grand Executioner
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mooning the house that Ruth built.
Oct 1999 time: 21:21
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quote: Originally posted by Kidicious
I know that I can never get the time it took to read this horseshit back. In a way that time has value, although no goods and services were created. |
Well, I can see in your system why you think there's no time value of money.
In our system, we expect to invest money to increase value, and therefor increase revenues, profits, etc. over time. At least we have the opportunity to do that.
In your system, there's not one fundamental concept which isn't seriously flawed and totally skewed from reality. In your system, investing additional capital makes no difference, as the enterprise continues to fail and require outside subsidy until there is no more possibility of outside subsidy, then the enterprise contracts and ultimately fails. Thus all capital investment tends towards zero over time, and money has no time value, since it's all pissed away. 
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David Floyd
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The bottom of a large bottle of beer
Jan 1970 time: 05:21
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quote: True, the value of the one computer would be more because of the law of diminishing utility. |
In other words, value would change based on something other than labor.
quote: What's false is that the price equals the value. |
In a free market, price is a good measure of value. If the price is perceived as too high, then people will decide that their money is more valuable than the product. Remember, price references money, which also has a certain perceived value. If I need to make a decision to spend money, I have to decide whether the money or the good/service is more valuable.
quote: It doesn't in either case, simply because the price includes all kinds of fees that are not payments for creating that good. Interest on money is one of those fees. |
And if that price goes too high, then people will decide that their money is more valuable than the product or service. Some people will disagree, and will be willing to pay a higher price, but if most people think the price is too high, then competition and the desires of the public will drive the price down.
The bottom line is that a product has absolutely no value when it's sitting on the shelf at the store. It only has value - to the consumer, the retailer, and the manufacturer - when someone decides to buy it.
These are all side points, though. You've already agreed several times that value is relative rather than absolute, which was my original point. Now the last step is for you to agree to the obvious - that the relativity of value is based simply on perceptions.
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David Floyd
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The bottom of a large bottle of beer
Jan 1970 time: 05:21
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In the Kidiverse, all resources seem to be unlimited.
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Natalinasmpf
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quote:
Tell you what . .. you give me 100,000 today and I'll give you back your 100,000 a year from now PLUS I'll mow your lawn ( giving you some work value). |
What about inflation?
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All times are GMT. The time now is 05:21. Apolyton Time is 00:21. |
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