You are viewing a single comment's thread from:

RE: What Is Financial Value?

in #economics6 years ago

But isn’t the supply / demand dynamic you're describing just another way of describing how much individuals want something? Your belly lint might be completely unique, but that doesn’t make it financially valuable. :)

But yes, I agree, the amount something is necessary for comfortable living connected with its availability does strongly correlate with how much people believe something is valuable which determines their in-the-moment financial transaction leading to price discovery. Even this, however, is still open to manipulation. Some poor families, for existence, may eat terribly cheap, unhealthy food but still own a massive TV purchased on credit for which they pay interest. That’s not rational but, for them, it’s what they believe is valuable that drives their purchasing decisions.

Sort:  

I agree with the part about the TV, but what can you do? And I think it is sort of a way of describing how much they want something, but the limited supply increases that value. Our wants are endless, but our resources finite.

Coin Marketplace

STEEM 0.20
TRX 0.12
JST 0.028
BTC 64242.18
ETH 3496.88
USDT 1.00
SBD 2.50