Free Exchange Is Win-Win

Source: Free Association
by Sheldon Richman

“In the marketplace, profits come from voluntary exchange, which requires that buyers and sellers freely choose to transact business. Why would they do that? They do it because each party expects to benefit — to be made better off — by giving up something they own for something that they would rather own. This is clear with barter, but it’s equally true when one party trades money. Money, a medium of exchange, expands the opportunity for exchange by enabling people to get what they want even when they don’t have the particular items that their available trading partners want. When Smith trades a sum of money to Jones to acquire shoes, Smith demonstrates that he prefers those shoes to anything else he might have feasibly used the money for, including holding on to it. Jones demonstrates the opposite preference.” (06/17/22)

https://sheldonfreeassociation.blogspot.com/2022/06/tgif-free-exchange-is-win-win.html