by sabastious 63 Replies latest social current
So, Frank should make NO money for doing Jim's work?
Here's the bottome line:
If Jim wants to MAKE MONEY ont eh project, then he needs to figure out a way to cut costs.
If Jim is just making improvments for his own pleasure/enjoyment.........who cares about cost?
Either way, Frank is a business-man.
Use his services or not....that's Jim's choice.
The "system" gained $50 that is what happened. You can go chop down trees on land you own if you want or you can pay professionals to do it more efficiently. It is a society that works together. If Jim is a used car salesman and he sells a car to Frank and makes a $200 commission ......... that's capitalism. YOUR work, knowledge, training, ability, etc... all have value.
Without capitalism it is like 6 year old soccer - we don't keep score - everybody wins. Which really means nobody wins. I
Use his services or not....that's Jim's choice.
If Jim wanted to produce his own lumber how would he do that without spending more than it would cost to just go buy it from Frank?
-Sab
The "system" gained $50 that is what happened.
Frank takes the $50 and uses it to sustain his life just as Jim uses a box stacking job to sustain his. The only "system" that gets the money is the tax that is taken off the $50 profit.
Btw I'm not anti-capitalist I'm just trying to figure out how economics work.
-Sab
If Jim is just making improvments for his own pleasure/enjoyment.........who cares about cost?
The cost is ecnomics and everyone cares about economics since it effects everybody. Recreational spending can turn into living beyond our means and that's why I think were in the recession/depression right now. Losing money so that you can have something at your house that cannot ever get that money back with is an act that maybe is taken for granted in society.
Now if I buy a car from a car salesman that is different. I am making a purchase of an item that can make money since transportation is generally required today to make money.
-Sab
So, Frank should make NO money for doing Jim's work?
It's not that Frank shouldn't make a profit it's that Frank is required to sell his inventory for more than it's worth. That could be the definition of a scam right?
-Sab
This system does not seem self sustaining to me.
Well that's because it's not a system. . . it's a single transaction.
Doesn't Jim have a job stacking stuff? Or does Jim's entire 'system' boil down to going to Frank and buying lumber?
If Jim wanted to produce his own lumber how would he do that without spending more than it would cost to just go buy it from Frank?
Jim could buy the lumber from the same place Frank gets it for $100.
If that's not possible then you could say that the lumber is actually WORTH $150 and Frank is just getting it cheap. In which case Jim hasn't lost $50 because he spent $150 and got $150 worth of lumber.
Jim could turn around and resell it for $150 if he so desired.
Doesn't Jim have a job stacking stuff? Or does Jim's entire 'system' boil down to going to Frank and buying lumber?
Jim needs to work 8 hours a day at a low wage to be able to even consider a house project. Does Jim buying lumber from Frank is an example on his Jim and Frank's world-system operates.
-Sab
If that's not possible then you could say that the lumber is actually WORTH $150 and Frank is just getting it cheap. In which case Jim hasn't lost $50 because he spent $150 and got $150 worth of lumber.
Then the same problem is there just in reverse:
Harold sells lumber to Frank for $100. Frank sells the lumber for $150 to Jim. Harold just lost $50.00 did he not?
-Sab
If you want to know how economics *works* go online to a college book store and purchase Econ 101. Start there and work your way up. Better yet, take an Econ course at the local community college. The money will be well spent.
Trying to understand Economics on an Ex-JW board is an, umm, uneconomical use of your time.
