this post was submitted on 22 Aug 2023
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United States | News & Politics
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A transaction for stock is the same as any other transaction. It terminates once money is exchanged. You do not extrapolate what happens after. When I pay my check at a restaurant does the cook run out the door to spend my money or does it go in the register?
I saw your other posts and wanted to point out a few key points.
Have you read Capital? It goes through money and velocity pretty thoroughly early on and I think addresses some pretty big assumptions econ classes tend to present.
The intrinsic value of fiat currency is 0. Double, halve, quadruple 0 all you want makes no difference. It's function and value is as a medium of exchange.
Imagine a copper based currency. If supplies of copper increase, the intrinsic value of copper falls, so the total value of the currency falls. The extrinsic value is not affected.
If I buy a widget for $1 and my labor is $2, I can be paid in 2 widgets. The money supply doesn't change that my labor is 2 widgets. If prices are increased on widgets by a capitalist, then I would expect an increase in my labor price (in dollars), regardless of the money supply, because money has no intrinsic value.
I'll state again that this difference (capitalists choosing to raise prices vs blaming external factors like "money supply") is not just pedantic. Capital mentions it few times, the fetishization of money and capital accumulation/hoarding cause this belief that money has a function outside of exchange.