> Doesn’t really tie in to actual markets involving physical item.
- A designer brand has admitted to destroying its own products. Coach confirmed that it purposely ripped up bags that were returned to its stores, even if the bags were still in good condition. https://www.bbc.co.uk/newsround/58846711
Monopolies and cartels are also well known for creating fake scarcity. Fake scarcity is bad for the economy and for consumers, only a few profit from fake scarcity at the cost of everybody else.
only to the extent that they are both artificial. The totality of USD _represents_ the totality of all resources that exist under the control of the USA (ala, the people, gov't, companies etc, as well as any natural resources).
The counterstrike skins don't represent such real life physical resources.
You're forgetting the other side of the equation, demand. The reason they have value is the level of demand versus supply. The item has to have some real world value, even if that's just being able to show off.
They're are plenty of things in very short supply, bit no one wants them.
Not really, but it's actually kinda like currency. Imagine if a government suddenly devalued all $500 bills into $100 bills, but every other denomination remained the same.
That’s not really what happens though. What happened was that 500$ bills where so rare in circulation that collectors started paying upwards of 20 100$ to get them. Valve went “yes the 500$ are too rare, we need to fix supply so we’ll start exchanging 5 100$ bills for one 500$ bill”
This had catastrophic impact on people hoarding 500$ expecting their exchange value to remain at the elevated levels.
Not really the same is it. You are confusing a stock and a flow. Currency is exchanged for something material you have to give up.
Government may indeed issue more currency, and does do so every day, but it is in exchange for something the private sector has that it wants for the public service. That isn’t a problem as tax is a percentage and operates as a geometric series - meaning that whatever government issues it gets back exactly the same - unless somebody along the way saves it.
There has to be something available to buy in a currency for it to be issued. As we see in the game.
Doesn’t really tie in to actual markets involving physical item.