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Culture War Roundup for the week of October 2, 2023

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Wealth is measured in terms of what goods and services it can buy. Higher real asset prices have more purchasing power and make society richer, controlling for the quantity of those assets.

Asset prices can be high because the quantity of assets is low or because the demand for assets is high.

We are clearly in the second situation, and that's clearly what's implied by "asset pricing bubble", which is a good situation to be in. It raises the value of existing wealth, which increases our purchasing power and causes more wealth to be created.

Wealth is measured in terms of what goods and services it can buy. Higher real asset prices have more purchasing power and make society richer, controlling for the quantity of those assets.

How is society richer by having less of something?

Certain parts of society is richer, society as a whole no.

It's simple really society A has 5 assets and 10 services per capita, and society B has 4 assets and 10 services per capita, those assets and services are identical. Society A is wealthier. And You can exchange 2 services for 1 asset as opposed to 2.5 services for 1 asset in B.

Which society is richer again?

You are twisting economics in knots to sidestep the simple idea that "more is better".

How is society richer by having less of something?

I'm not sure where the misunderstanding is. By "controlling for the quantity of those assets", I mean that the quantity stays the same. So society wouldn't have less of anything.

And You can exchange 2 services for 1 asset as opposed to 2.5 services for 1 asset in B.

There is no law of economics that says the total value of assets has to equal the quantity of goods and services produced in a given period.