• hayvan@piefed.world
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    2 hours ago

    Each time money moves: one trade happened. Someone bought, someone sold something. It’s all activity. Money moving around fast: a lot of activity, people getting what they want. Money sitting still: stagnation, no work done, no production etc.

    That’s the theory. Of course reality is a bit more complicated. People doing volunteer work is often net positive for humanity but won’t show up in economic metrics.

    • SharkWeek@lemmy.blahaj.zone
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      2 hours ago

      Ok, but why should people get what they want?

      I’m in Vietnam at the moment, lots of people work simple manual jobs and just get by. They don’t have a lot, but they’re friendly, welcoming, and generally happy.

      Meanwhile, the weekend before last I was in Singapore where loads of money is constantly moving around … and it did not feel like a good place to be.

      • hayvan@piefed.world
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        2 hours ago

        I’m not disagreeing with you. I have held the belief that neoclassic theory of economics is bullshit since I studied it 20 years ago. I’m just explaining that bullshit which is still used to measure things like development, progress etc.