Post
Topic
Board Economics
Re: Growth, Interest and Wage Inequality - To the austrian economists here
by
Rassah
on 21/07/2011, 21:12:05 UTC
Money can take the basic interest from the wares. If the wares don't pay the interest, they aren't sold. And the wares lower its price until they're sold, that's their nature.

I'm stuck in the mindset that if wares don't cover fixed and variable costs (costs of producing the wares), they aren't sold. If they do, they are sold even if profit is $0, simply because wares produce a benefit by their existence/use value. Interest doesn't come into this at all...

The supply of money is scarce (or that money concrete money dies by hyperinflation) and no sector has produced it (forget our current regulated financial system): the whole community has given it the value.
Money takes profit because its scarce and it (unlike wares and the time of workers) last forever at no cost.

So, essentially, a representation of a good or a representation of someone's time/work can be stored in a medium that lasts for ever at no cost. I think I'm getting this part, but where is the profit coming from? The difference between the retained value of money, and the decreased value of the expiring good it used to represent?