Wednesday, June 20, 2018

Division of Labor and Money

Division of Labor is implicit in any Barter, as each party produces a good that both need.  So, when Money becomes a factor in an Exchange, Division of Labor becomes suspended, if not eliminated.  For, the source of Money being used for a purchase is irrelevant to the transaction, if each does acquire a set of needed goods, it is only mediately.  Likewise, more generally, Division of Labor is no factor in indices of the well-being of an Economy that are in monetary terms.  For example, the amount of GNP entails no particular division of types of goods produced, so an Economy can be pronounced healthy whether or not it meets vital needs.  Thus, the condition of an Economy is contingent of what its priorities are.

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