economy musings

 I'm watching this guy on youtube in an artificial community with a simple economy. People try and sell things they find in the minecraft world to each other with diamonds as currency.  Its really quite a good simple economic model. Well this one guy was really low on diamonds and resources. Someone who had more resources for various reasons set up a game in the game, and our protagonist won big big big. Like beast mode good.  So He starts going and spending it at all the shops in town. My first instinct was "hey man, keep some against the future." But then I realized if he's got a shop, and he has, and he's splashing that cash all over town, then the others can come buy from him and keep his income going. He gets all the goodies, and the economy gets a boost, and everyone else buys more stuff from each other, so they can buy more, and only saturation or resource depletion is going to get in the way of it.  If the items sold are crafted from renewables and most things are consumable, then a stable economy can be created. At no point does one guy need to keep a bunch of his diamonds against the future. That's what the community is for.  Spending your savings to create a stronger community gives a more secure future for you and your community.

Now, if the money being spent is NOT being circulated in your community then the whole thing breaks down. There's economic circles, but when even the most basic consumable goods and needs are being imported and the money exported, you impoverish your community by spending.

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