Small silhouette of Doug Wolkon WELCOME TO PLURANOMICS, THE ECONOMICS OF MANY.

A Penny to Measure Time

This post is a response to A Penny for Your Thoughts? What an Insult! by Stephen J. Dubner on the New York Times Freakonomics Blog.

Any derivatives of $1 as currency increases our financial service costs (i.e. in the form of complicated accounting and just plain time to figure out the math at time of purchase). Economically speaking and unfortunately to all you labor, it allows labor time to be denominated down as math, not value.

In other words, such denomination of a dollar allows us to denominate labor time down to just a penny or say a “second” of time. That penny is theoretically the cost of a given amount of labor time which we refer to as a wage. However, it is in the laborers and our economies best interest to be paid for the value of the job or skill, not the time.

In other words, pennies only help the landlords and their ability to regulate labor time. A stable currency based on true value will naturally disregard such denominations as an inefficient cost of trade and employment growth.


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