Friday, June 21, 2013

Aristotle and Chrematistics

In a nutshell, if you just make money by gaming the system or printing money with out adding instrinsic value to the economy your gonna have economic problems.
Aristotle established the fundamental difference between economics and chrematistics. The accumulation of money itself is an unnatural activity that dehumanizes those who practice it. Like Plato, he condemns the accumulation of wealth. Trade exchanges money for goods and usury creates money from money. The merchant does not produce anything: both are reprehensible from the standpoint of philosophical ethics.
According to Aristotle, the "necessary" chrematistic economy is licit if the sale of goods is made directly between the producer and buyer at the right price; it does not generate a value-added product. By contrast, it is illicit if the producer purchases for resale to consumers for a higher price, generating added value. The money must be only a medium of exchange and measure of value.  From Wikipedia

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