Posted: Sep 24, 2013 7:33 am
Meme wrote:Use of currency dates back at least 4000 years, and probably further than 15,000 if you count barter currencies based on physical goods. It is used because it works.
Like lots of other things that 'work' (because they haven't failed yet), exchange media are evolved, rather than designed. I'm not dissing your defence of money, but to say something that isn't extinct is still working is a tautology.
Meme wrote:There are uncountable examples of win-win exchange between parties that increase the wealth, or happiness, or utility, or potential interest of both parties.
That does not respond to the problem of economic advantage. Got any more dogma you want to spout at us? Right on cue:
Meme wrote:In an economic system, actors are assumed to primarily act in their own self-interest. Thus the shopkeeper has no interest in setting prices lower if his customers don't know about alternatives. If he's in a monopoly position, then yes, this can be exploited. If he's in a perfectly competitive situation - ie one of perfect knowledge and absolute similarity/exchangeability of goods/services - then by setting prices higher than his competition he loses the sale and gains no utility.
Why are you speculating about perfect conditions? Because God's in his heaven, and all's right with the world? Tell us something we didn't fucking learn on the first day of class. That veenet has not been to the first day of class is beside the point. Economic dogma is not what he needs, which is to learn how to think.
Money isn't used because it works; it's used because it hasn't failed yet.