Wednesday, November 17, 2004

Quantum Economics

This is an idea that has been kicking around in my head for a while, and I think it is time to let it out.

Idea #1: Oftentimes in physiscs there are particles that do not have strictly defined characteristics. In these instances, all of the possible configurations of the particles have to be taken into account. Essentially, the particle is in all of the possible states it could occupy until the time at which it collapses into a single state.

Idea #2: A post I wrote way back when discussed economic flow a la Adam Smith. It sought to explain how a free market creates wealth. What stuck with me was how value increased in one direction while money flowed in the other.

Combining the two, I get the idea that money is value in an indeterminant state. It can be converted into other forms of wealth that may be more useful to the buyer while that form is more difficult to exchange for other types of wealth. In fact, the easiest way to convert wealth is to use the medium of money. In post-apocalyptic fiction the point is often made that cash becomes little more than kindling since it has little value aside from the agreed upon. Or another example, when people win the lottery they talk about what they are going to buy with the money as opposed to enjoying the cashiness of it. Okay, personally, I'd take out $200,000 in hundreds and roll around in them for a while, but they would still eventually get spent. The only value money has is that it can be converted into any another form of value, but none actually in and of itself.

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