spikegirl7 wrote:A pound of beef here is not the same price as a pound of beef in, say, New York. And it certainly isn't the same price in London.
It isn't the same good - it goes from being "beef here" to "beef in New York" or "beef in London". I could ship it from one side of the street to the other - it will have a cost, and therefore the beef will suddenly be more expensive. Doesn't have anything to do with the dollar used to purchase it.
Even accounting for taxation and transportation, the cost of goods is not the same everywhere.
You accounted for all of that, and included other various costs of production, uniqueness, and supply and demand considerations that have nothing to do with the money in question
? On your own? Please, show me your calculations.
There are two things that can change the price of something. Changes in supply, demand, and production cost on the commodity side
or changes in the value of money. Inflation is a change in the value of money by increasing supply - and prices will rise (usually quickly) to reflect such a change, no matter what currency is converted into the inflated currency. But the effect of transportation or locality shifting has absolutely nothing to do with it
. It is a separate, and commodity side
If semantics is your only argument, then you're not in a good position.
It isn't mere semantics, but an important point to understand in order to truly understand the workings of monetary and credit in a modern economy. But whatever.
You believe unequal inflation and a rapid change in exchange rates are felt instantaneously, with no immediate or protracted lag in wage and price adjustment?
No, but this effect is a known monetary effect and has nothing to do with the piece of paper in one's hand, but the spreading of new money into an economy. Your assumption that travel would be increased is based on the idea that exchange rates would adjust before prices - and that is mere guesswork, as it could happen entirely the other way around.I'd love for you to explain how it can cost twice as much for a farmer 90 minutes from NYC to transport
Taxation. More expensive transportation of capital goods raising the price of initial production. And so on. I never claimed it was only
transport costs of the produced good - only that it had nothing to do with the character of the dollar bill
. An instance of inflation upsets costs and prices in a nonuniform manner, yes, but this is mostly unpredictable, and would have "trickled through" the economy within mere months.
Yes, actually, it does. That's exactly what it means.
No, it doesn't. Assume for a moment that the money is gold or silver coin. Would you say the same thing about that? That gold magically changes in market value across arbitrary lines on a map? Or is it rather that relevant commodity side issues arise - changes in taxation, security costs, local production costs (although this is not arbitrary - no one "decides" where a desert is, for example), local level of supply and demand (for local services, etc.), local variety/uniqueness (a hotel in Costa Rica is not the same as one in Longmont, CO, or even Florida), etc.
Any commodity (including money) has a market value based on supply and demand - it does not become "worth more" on a market without modification of supply and demand. And that only occurs with the commodity being traded for
the money - not the money here.
Your stance simply does not hold true when (as in traveling to a non first world country) a fixed number of dollars is able to purchase much higher quality or more goods and services across the board.
You cannot get such higher quality "across the board" in such a poor country. In fact, you suffer from much lower
quality in nearly everything, with only a few exceptions based primarily on a low demand from locals and generally in the service industry (cheaper labor as there is a lower demand for it due to lack of capital).
Frédéric Bastiat wrote:And now that the legislators and do-gooders have so futilely inflicted so many systems upon society, may they finally end where they should have begun: May they reject all systems, and try liberty; for liberty is an acknowledgment of faith in God and His works.
Count Axel Oxenstierna wrote:Dost thou not know, my son, with how little wisdom the world is governed?