'All that glitters is not gold; Often have you heard that told: Many a man his life has sold But my outside to behold: Gilded tombs do worms enfold'
What is value? It's clearly not from the usefulness of an item, otherwise water would be much more expensive than diamonds. Karl Marx claimed that value stemmed from the 'only thing common' to all commodities-the labor that goes into producing them. Adam Smith claimed that value stemmed from whatever people demanded of that commodity (scarcity). The latter theory is currently winning in most economist's minds as the more likely source of value. Yet, here in Moscow, there are price discrepancies that seem to defy either of those claims.
What is value? It's clearly not from the usefulness of an item, otherwise water would be much more expensive than diamonds. Karl Marx claimed that value stemmed from the 'only thing common' to all commodities-the labor that goes into producing them. Adam Smith claimed that value stemmed from whatever people demanded of that commodity (scarcity). The latter theory is currently winning in most economist's minds as the more likely source of value. Yet, here in Moscow, there are price discrepancies that seem to defy either of those claims.