Subject:
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Re: All The Money In The World
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Newsgroups:
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lugnet.off-topic.fun
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Date:
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Thu, 21 Dec 2000 16:44:25 GMT
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Viewed:
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1324 times
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In lugnet.off-topic.fun, Dave Schuler writes:
> Hypothetical:
>
> I live in Boombaville, a closed economic community in which the total money
> available equals $1000 and where money orders cost $.50. Having closed an
> auction deal with an AFOL in a distant part of Boombaville, I proceed to the
> post office to buy my money order. I walk in with $10.50 and walk out with
> a ten-dollar money order negotiable for trade and purchase.
>
> I might be missing something simple, but it seems to me that I've
> increased the net dollar amount in the community by $10. In any case, this
> would be temporary money, since it will cease to exist after my fellow AFOL
> cashes it, but what about in the meantime?
>
> Dave!
Assuming your money is part of the total $1000 the economy never would increase
because you give $10.50 to the post office. The post office increases it's
portion of the $1000 dollars by $10.50 at the same time you lose $10.50 of your
portion. Then when the AFOL gets the money order, his portion of the $1000
increases by $10.00 the same time the post office's portion decreases by
$10.00. Thus at any given time the total money will always equal $1000. The
only way to change the value of the community is to add or remove money.
HTH,
Jude
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Message has 1 Reply:
 | | Re: All The Money In The World
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| (...) Does that include the time between the purchase of the money order and its cashing? During that time it seems that there is $10 more in circulation--not actual, minted coinage, but legal tender nonetheless. Dave! Still talking to himself. (26 years ago, 21-Dec-00, to lugnet.off-topic.fun)
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Message is in Reply To:
| | All The Money In The World
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| Hypothetical: I live in Boombaville, a closed economic community in which the total money available equals $1000 and where money orders cost $.50. Having closed an auction deal with an AFOL in a distant part of Boombaville, I proceed to the post (...) (26 years ago, 21-Dec-00, to lugnet.off-topic.fun)
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