Wealth is the state of accumulating added value. Most of us consider money a tool for accumulating value, but there are many other forms in this world. However, all other values are typically expressed as ‘price,’ which is a value compared to goods in terms of money. Therefore, a preconceived notion exists that most means of accumulating value are strictly monetary in nature. Nevertheless, various tools for accumulating value are available, such as jewelry, luxury goods, bonds, and real estate. The value of goods produced by labor is referred to as ‘price.’ Labor can only be directed toward production when the price level is slightly higher than the value of money. Hence, it is normal for prices of goods to continue rising. If they rise excessively, it leads to inflation; on the other hand, if they fall below their value, it results in deflation. There is a problem between the gaps. - Joseph’s “just my thoughts”
Value in Kind (VIK). Refers to the spot value . We pay money to buy the goods we need, which represents an exchange of goods for currency. However, since money is also a kind of good, it has a relative value that constantly changes. That’s the price. When the price of goods rises, it indicates that the value of money in relation to goods declines. This phenomenon is called INFLATION . If other goods exchanged for goods experience a greater value increase than currency, the seller finds it more advantageous to transact using those other goods rather than currency. We prefer to exchange currency in transactions because it is a government-guaranteed compulsory means of exchange . The right to exchange anything constitutes compulsory circulation power . However, this is the only value of money. If the price of gold is rising significantly, and you can exchange gold for goods, it becomes a better option for producers of goods to trade in gold instead of money. Originally, the pre-currency...