Meditations and Learnings

Meditations and Learnings

The Real Cost of Things

The real cost of anything under any system is its value in alternative uses. A price-adjusted economy reflects this value. Other systems ignore it at their peril. No product has a fixed “need”, nor is there a fixed supply. The cost of a product is entirely context-dependent; oil may cost double the amount to extract in Canada than in Saudi Arabia. In a collective, there can be a tragedy of the commons scenario in which no single member has an appreciation for the real cost of a good.