Originally posted by KazetNagorraIf the value of an object varies from person to peron, then what do you mean by it having some "true" value?
I didn't say value cannot differ from person to person, obviously a book on physics has more value to me than to a construction worker, but that doesn't mean the price reflects its value one to one or that it does not have a definite value for me or for the construction worker.
Originally posted by quackquackNobody is questioning that you can lose wealth. You lose wealth to other people all of the time.
If you own an item and the market price goes down, there is a loss of wealth. I am not sure what anyone is arguing here.
The question is whether the wealth was destroyed or transferred. I say wealth is destroyed when a tornado ripped a house apart or you damaged your car beyond repair, etc. If nothing tangible is destroyed I believe it is transfer of wealth. Somebody gains from your loss.
Originally posted by AThousandYoungIt has a (different) true value for every person. This true value is a reflection of the utility it grants to an individual. The price may or may not reflect its true value when purchased, they will only always overlap if the indivual purchasing the item is all-knowing, can travel the world infinitely fast and is completely rational.
If the value of an object varies from person to peron, then what do you mean by it having some "true" value?
Originally posted by Metal BrainNo serious economist would debate that recent economic events represent destruction of wealth on a near-Biblical scale.
Some people say that the stock market crash is destruction of wealth. I think it is transfer of wealth because nothing tangible was destroyed.
Am I right, or did I overlook something?
Originally posted by sasquatch672http://en.wikipedia.org/wiki/List_of_natural_disasters_by_death_toll#Top_10_deadliest_natural_disasters
No serious economist would debate that recent economic events represent destruction of wealth on a near-Biblical scale.
Top 10 deadliest natural disasters
List excludes diseases and famines, which would otherwise occupy the entire list.
Rank Event Location Date Death Toll (Estimate)
1. 1931 China floods China 01931-01-011931, July–November 2,000,000-4,000,000*[1]
2. 1887 Yellow River flood China 01887-01-011887, September–October 900,000–2,000,000
3. 1556 Shaanxi earthquake Shaanxi Province, China 01556-01-011556, January 23 830,000+
4. 1970 Bhola cyclone Bangladesh 01970-01-011970, November 13 500,000
5. 1839 India Cyclone India 01839-01-011839, November 25 ≥ 300,000
6. 526 Antioch earthquake Antioch, Turkey 00526-05-20526, May 20 250,000
7. 2004 Indian Ocean earthquake/tsunami Indian Ocean 02004-12-262004, December 26 229,866
8. 1976 Tangshan earthquake Tangshan, Hebei, China 01976-07-281976, July 28 242,000
9. 1920 Haiyuan earthquake Haiyuan, Ningxia-Gansu, China 01920-12-161920, December 16 240,000
10. 1975 Banqiao Dam failure Henan, China 01975-08-011975, August 231,000
Originally posted by KazetNagorraYep, well no stinking guvamint can do the same so they need to butt out of alllllllllllllllllll price controls.
It has a (different) true value for every person. This true value is a reflection of the utility it grants to an individual. The price may or may not reflect its true value when purchased, they will only always overlap if the indivual purchasing the item is all-knowing, can travel the world infinitely fast and is completely rational.