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RE: [Heal the Bern] What Makes Money Valuable?

in #healthebern8 years ago

If I could add, I think the regression theorem also explains how money gets it's value or even becomes money in the first place. Money, sound money at least (unlike fiat dollars as you point out) starts as a commodity on the market that is usually more "saleable" than other commodities. Meaning, these goods are accepted for a wider range of other goods (so ubiquity as you point out). It gains this because economic actors see that if they collect that commodity, they can trade it for a wider range of commodities they may desire. But this means that money must have a use or value outside of being a medium of exchange to a wide range of people. So salt has other uses outside of a medium of exchange. Gold, silver, and other metals like platinum also have industrial uses outside of being money. So something also needs a use or value outside of a use as a medium of exchange. US dollars fail at this as well.

Enjoyed the video though. You should do books on tape man.