am sure you’ll like the simplicity of the whole thing here….m
December 23rd, 2005 | by A T M |It feels happy when you read something insightful….
http://www.paulgraham.com/wealth.html
In a specialized society, most of the things you need, you can’t make for yourself. If you want a potato or a pencil or a place to live, you have to get it from someone else.
How do you get the person who grows the potatoes to give you some? By giving him something he wants in return. But you can’t get very far by trading things directly with the people who need them. If you make violins, and none of the local farmers wants one, how will you eat?
The solution societies find, as they get more specialized, is to make the trade into a two-step process. Instead of trading violins directly for potatoes, you trade violins for, say, silver, which you can then trade again for anything else you need. The intermediate stuff– the medium of exchange– can be anything that’s rare and portable.
Related posts
- critics,thinkers,intellectuals,movers
- creating things
- Paris Airport
- The World’s most comfortable shoes
