Jared Diamond Jewelry Store
Q: the interesting part would be to determine what led to this
divergence. why does country A start this value creation, the other
not? did you ever read "Guns, Germs, and Steel" by Jared Diamond? it
has a pretty plausible theory for this divergence
A:Actually, capital and money are 2 different things. Capital is what gives
money it's value. Until fairly recently, capital was much easier to define,
because there was a standard of measurement -gold. But I think that gold
was a silly thing to measure your currency against, as it had no inherent
value of it's own, other than for jewelry (and it conducts electricity very
well). But still, capital is what you can back your money up with.
but even if they are not chryslers: if nobody wants to buy them, what
is their value? of course, some value has been expanded in their
production, but in such a case it seems to be simply wasted (of
course, there is always the company store principle that gives you a
captive market)
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