Thursday, August 11, 2011
What could this quote mean? Quotes experts help?
Basically she's saying that objects themselves have no value but that any price determined is based on changes in the economic system. For example take any object, say a pencil. How much is a pencil worth? Well in fact it's whatever a willing buyer would pay. So (if in USA) let's say you were offered a pencil, for sale and the seller asked for $100, you'd probably decline to buy it. You might offer 1cent which the seller would refuse. Eventually you settle on a price of 50 cents, a price acceptable to both. If, in 10 years time the same transaction takes place and the price agreed then is $1 due to inflation. What has happened is that the pencil is exactly the same but due to economic conditions the value of the currency has gone down. Therefore the arbitrary value is dependant on the value of the currency as the object remains static.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment