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Re:[LandCafe] Modernizing Henry George 3 ways

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  • Fred Foldvary
    From: roy_langston1 ... In my judgment, the definition of consumption is the using up of economic value. Thus when a thing
    Message 1 of 37 , Sep 6, 2010
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      From: roy_langston1 <roy_langston1@...>

      >> During consumption, the value of the product diminishes.
      >> Harry

      > Consider antiques people use in their homes. Their condition gradually deteriorates even as their value rises.<
      > Roy

      In my judgment, the definition of consumption is "the using up of economic value." Thus when a thing appreciates in value, or even when it just does not depreciate in value, it has not been consumed.

      When fire consumes wood, it uses it up. The wood is not used up when somebody buys it. No consumption occurs just buying it. That is just a transfer of ownership. The wood is used up - consumed - when it is burned.

      Thus a car is not consumed when bought, but as it depreciates over time.
      Indeed, economists also call this depreciation "capital consumption."

      >> But then, as I regard the car as a consumer activity that is not part of a Science of Production and Distribution, I happily escape any
      >> Harry

      A company that leases cars is engaged in production of car-use services.
      What is the physical difference when the car is used by the owner?

      Fred Foldvary
    • Harry Pollard
      There is a strong difference, Fred, between goods that demand throughput, and goods that increase in value when they are not sold. Although I ve heard of
      Message 37 of 37 , Oct 19, 2010
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        There is a strong difference, Fred, between goods that demand throughput, and goods that increase in value when they are not sold.

         

        Although I’ve heard of tankers slowing down so a later delivery can find a higher price, essentially oil moves through the pipelines to enjoy profitability, whereas holding land from use may be the most profitable course.

         

        Harry

         

        ********************************

        Henry George School of Los Angeles

        Box 655

        Tujunga  CA  9104

        818 352-4141

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        From: LandCafe@yahoogroups.com [mailto:LandCafe@yahoogroups.com] On Behalf Of Fred Foldvary
        Sent: Monday, September 13, 2010 8:22 AM
        To: LandCafe@yahoogroups.com
        Subject: Re: [LandCafe] Re: Modernizing Henry George 3 ways

         

         

        From: mattbieker <agrarian.justice@...>

        > The main reason for comparison between the land market and the collectibles market, it seems to me, is that both are markets for things which are have fixed supply. <

        What about oil, which has a diminishing total supply?

        FredF

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