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by lucky_cloud 42 days ago
You say that as if those things have always required money. People had all of those things for hundreds of thousands of years before money was invented.
1 comments

“Money” is just a way to say “people’s time and resources.”
In the US economy and much of the rest of the world, money is decreasingly tied to the time or resources of people. It is increasingly tied to the money, market capture, and regulatory capture of corporations that specialize in finance rather than producing goods.
Isn't that the point of economics? If you're just going to tie money to something obvious, you don't need economics.
Yes, you need economics even when most of the money is used to pay for something productive rather than extractive.
but what's the difference between 'productive' and 'extractive'? Clearing huge swaths of land for agriculture is highly productive, in terms of making crops. Likewise irrigating huge swaths of arid land for agriculture is also highly productive. Are those 'extractive' or not?
The original turning the none used resource into a productive resource (your eg clearing land, irrigation etc etc) is productive.

Big land owners / PE / ... cornering all the available agricultural land / needed supply chain / economies of scale etc etc to extract more and more value of Scarce resource that has already been optimized is extractive.

The thing is that the word extractive makes it hard to have a good debate because pure extraction is rare (aka no need to add any extra labor to have the possesed "good" maintain or exceed its value vs inflation...

Personally in general I would prefer more usage of the word rent seeking (aka legally and finite resource captured market) and others.

As the current biggest problem in most countries in the world is housing and its cost for those who are renting and without any (realistic / statistical...) hope of ever entering the owners side that seems like something worth talking / voting for.

(I can get my beef from brazil / australia / ... But i can't get my land from there while living here.)

Let’s try to keep productive and extractive to their economic meanings, and not talk about the exploitative practices with natural resources for a moment.

A farmer puts products that people buy into the marketplace. Many actors in the financial sector make their money by micro-timing trades in securities and commodities markets that are already liquid enough they don’t need the additional activity. Others buy up stock of housing just to control enough to raise the prices. They are literally just taking other people’s money out of the economy for their own gain, and the economy does not function any better due to their activity. In fact, when housing is overly tight the economy suffers.