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Notes -
I have never understood what is so paradoxical about the "diamond–water paradox." Or why it's so religiously cited by libertarian adjacent people.
Asking why water is cheaper than diamonds is like asking why are housing construction parts cheaper than built houses. Wow, such a "paradox." Besides the obvious, imagine a world where housing parts were cheaper than houses. Very soon all houses would be stripped for the more precious copper and wood beams inside. Until society reasserts itself to sanity and "revalues" houses more than wood piles.
Similarly, imagine a world where diamonds really were cheaper than water. 1 of 3 reality outcomes emerges, it seems to me.
Everyone dies very quickly as a cup of water is equivalent to a cup of diamonds, meaning only a couple dozen people on earth can consume water regularly enough to survive. Lots of fighting occurs.
Diamonds are actually super common and worth less than a bottle of water, despite maybe being acknowledged by some as pretty. Like smooth stones or pinecones.
Diamonds are still relatively rare but regarded as fairly worthless and uninteresting. Akin to a seashell with a unique pattern.
Any attempt to abrogate these possibilities will be smacked down and reasserted by reality. Diamonds simply CAN'T be cheaper than water for any length of time - at least in a 1 scenario. Like with the houses and their parts, water is priced in as an underpinning of pretty much all economic activity, because it's necessary for life. It needs to therefore be trivially cheap or free. When you buy a house, you are buying an equivalent amount of water to keep everyone hydrated in its production. When you buy diamonds, you are buying water it takes to harvest and maintain them, up until the point where they enter your hands.
Where's the paradox? This doesn't seem hard to see, to me.
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