Fundamentals of the economy: types of exchange benefits, property rights, credit goods and services, alienated and inalienable benefits: we have a tendency to looked at the exchange of benefits through the example of goods- horses and fish. but people can also share other benefits, such as changing goods to services. And services can also be bought for direct consumption (e. g. medical care or singing a song) or not for direct consumption (e. g. cultivation work).
Even the goods are not really valuable in themselves, but the service they serve the person. Bread is valuable for its ability to satisfy hunger; home is for its ability to provide a roof over one"s head. From this point of read, all goods can be regarded as services.
There are benefits that by their very nature are notexchangeable. For example, Ivan wants Peter to respect him. Respect is a consumer good that cannot be acquiredfor another good (unless, of course, sincere respect is needed, not an imitation of it). Respect for Ivan can beconsidered an inalienable sensible of Peter. Thus, the alienated goods - both goods and services - are subject to exchange. Property right: for example, Ivan brings a ton of wheat to Peter"s warehouse for storage. Peter givesIvan a warehouse receipt, which gives him the right to demand wheat when he needs it. in the free market (i. e. without violence), the receipt is fully equivalent in terms of exchange to wheat, i. e. Ivan will be able to change the receipt for some other good, just as he would change wheat.
A similar object of exchange is the property right. when selling real estate, a written certificate of the new owner is made.
A loan:
"Before that we talked about the exchange of real goods (that is, goods that can be used in the present time). in a credit exchange, the real good is exchanged for the future sensible. for example, Ivan wants to buy 100 kg of cotton from Peter. In return, Ivan offers Peter the right to demand 110 kg of cotton in a year. we can say that the price of 1 kilogram of real cotton is 1. 1 kilograms of Cotton-Cherez-Year. With this exchange, the price is determined in the same way as in any other case - based on the individual scales of values of the participants of the exchange and supply-demand in the market. Anyone will prefer the real good to the future (i. e. any specific amount of any particular good is bettercurrently than later). At the same time, the degree of preference of the present for the future is different for everyone. These preferences affect the price of credit."
The recipient of the present benefit (debtor) will alwayshave to pay more to the claimant (creditor) in the future, because a fixed amount of benefit in the present is worthquite in the future. The creditor provides a benefit service to the debtor now, and the debtor pays for this service by giving more benefit later. when the right of claim under the loan comes into force, the creditor receives the benefit itself, and this right of claim is terminated. However, as long as the right exists, it can be exchanged for other benefits. for example, creditor Peter may sell his claim to Fedor from Ivan 110 kg of cotton in the future.
Exchanging the right of claim on a loan for another good is not a credit exchange. Thus, in addition to exchanging goods for goods, goods for services and services for services, it is possible to exchange goods for the right of claim, the right of claim for services, the right of claim for the right of claim. all these types of exchange aredescribed in terms of added value and demand-supply. different philosophies regarding the execution of property rights: we consider a free market where violence is not used to seize property. At the same time, we do not touch upon how this is achieved: whether all market participants simply refrain from aggression of their own free will, or whether there is a body that ensures the fulfillment of this condition, or each of them somehow protects their own rights.
A treaty is an agreement between two people to exchange two benefits (present or future). we proceed from the premise that any treaty involving the exchange of alienated benefits must be implemented. It isimportant, however, that the contract should not be fulfilled because there has been a promise from one of the parties, but because failure to fulfill the contract is actually theft. Suppose, for example, that an actor promised to act in three films without prior agreement on payment. and then he changed his mind and decided not to do it.
Since a person"s will is inalienable, no one can make him or her withdraw. And since he has not received any property from the film company, in the free market it will be impossible to accuse him of causing damage. Even ifthe film company spent a lot of money and made serious plans based on the assumption that the actor would keep his promise, it's no reason to expect the actor to pay for its shortsightedness. Keeping your word may bemore moral than not, but the conditions of a free market imply the exercise of personal and property rights, not morally imposed ones.