[HN Gopher] The Milken Way - "The scarce resource in our society...
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       The Milken Way - "The scarce resource in our society is not money
       but people."
        
       Author : pavanyara
       Score  : 59 points
       Date   : 2021-09-28 11:13 UTC (1 days ago)
        
 (HTM) web link (neckar.substack.com)
 (TXT) w3m dump (neckar.substack.com)
        
       | joe_the_user wrote:
       | I'm no sympathetic to effort to rehabilitate people like this.
       | Especially with "look what vacuous homilies they have to offer".
       | 
       | Aside engaging in actual crime, Milken's career was part of a
       | trajectory where corporate raiders forced a perspective of ultra-
       | short-term-ism onto the corporate world, something we're still
       | suffering from. And the association between this and actual law-
       | breaking isn't coincidental.
        
       | aeternum wrote:
       | To me it's strange to think of money as a resource especially on
       | the societal level. Money is just a unit of account. Creating
       | more or less of it should not create more resources or products.
       | 
       | People, natural resources, finished products, those things are
       | finite and thus there's a need to allocate them. Money has turned
       | out to be a good way of doing that.
        
         | allemagne wrote:
         | In what way is money not a resource at all levels?
         | 
         | There's a finite supply of money that can be added to, taken
         | away, allocated, or fluctuate in its price according to any
         | other arbitrary unit (i.e. dollars in terms of euros, or in
         | terms of baseball cards, or pounds of steel).
         | 
         | Just like legal entities or "social liquidity", the supply and
         | allocation of money is an ultimately imaginary thing that
         | nonetheless exerts real world influence on how many other
         | resources and products are created.
        
         | [deleted]
        
         | BBC-vs-neolibs wrote:
         | Has it?
        
         | merpnderp wrote:
         | Creating more money steals value from everyone who has traded
         | their work for money, and creating less of it adds value. So
         | you are right, it doesn't create more or less resources or
         | products, but it does change existing values of resources and
         | labor.
        
           | epistasis wrote:
           | As wealth grows through greater prosperity, if we do not
           | increase the money supply to match this growth in wealth, we
           | start to value prior labor far more than new labor. This is
           | incredibly unfair to people who were simply born later than
           | others, particularly since it's far easier to accumulate more
           | money if one already has a good amount of wealth.
        
             | merpnderp wrote:
             | Absolutely, which is why it is fair to err on the side of
             | inflation instead of deflation when managing the money
             | supply. But stability is more important than either
             | inflation or deflation, as an erratic money supply
             | increases uncertainty into the value of trades.
        
               | epistasis wrote:
               | Agreed, and IMHO inflation/deflation, for all the
               | difficulty of measuring them, is probably the best way to
               | know if the money supply is to high or low.
               | 
               | This is also why I think Bitcoin rests on shaky
               | foundations, and why I get tired of people who want a
               | balanced federal government spending budget.
        
         | simorley wrote:
         | > Money is just a unit of account. Creating more or less of it
         | should not create more resources or products.
         | 
         | Actually creating money does create more resources and products
         | and vice versa. It's pretty much the modern economic system.
         | More money makes more investment possible which can make more
         | resources accessible and therefore create more products. But
         | there is a physical limit on the resource side. And if society
         | fails to justify the money creation with more resources,
         | products and services, then you have inflation and ultimately a
         | currency collapse as everyone loses faith in the value of
         | money.
         | 
         | It's a balancing act between money and products - whether money
         | has to catch up to more products or whether products have to
         | catch up to more money.
        
       | cryptonector wrote:
       | Malthusians hardest hit.
        
       | vc9999 wrote:
       | Money has no intrinsic value
        
         | handrous wrote:
         | Trivially true, as value isn't intrinsic in the first place.
         | 
         | Now do human lives.
        
           | southerntofu wrote:
           | I think the parent's point was that a complex society can
           | exist without money without any obvious/unavoidable
           | downsides. It's just a layer of abstraction that's useful for
           | ensuring some people have more than others, but does not
           | serve any function in a society of abundance where resources
           | are more accessible to anyone regardless of "class" (monetary
           | barriers or other forms of social status, disconnected from
           | actual needs).
        
             | allemagne wrote:
             | "Actual needs", "serving a function" and
             | "obvious/unavoidable downsides" are loaded concepts that
             | humans disagree vehemently about, not any kind of objective
             | formula that can tell you the intrinsic value of other
             | concepts.
        
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       (page generated 2021-09-29 23:02 UTC)