Monday, November 18, 2019

Use Money to Transfer Value or Create Value?

I once lived in a remote tribal area in Guatemala, where they showed me how to live a simple life.

During the day, men (mostly from outside, and bringing lots of cash with them) dominated the marketplace. If you wanted something expensive, like a sewing machine, this was the time to come.

Value was being made. This is what the men were there for. Buy low, take it somewhere else, and sell high.

At night, the women took over, each bringing the goods they wanted to barter. What impressed me most was how quiet the place was then. There was no fighting, everyone knew what a fair price was and all trades were made at close to that price. Value was being transferred.

What about employment. Where people were bought and sold? The same principle applied.

Everyone knew what a fair price was, according to the skills required.

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