It’s a crazy real estate market out there. Prices have shot through the roof faster than, well, faster than the last real estate bubble we had. My neighbor across the way had 31 live viewers the first day it was on the market and sold it for ten percent above an aggressive asking price. Which makes those who own their homes outright, or with solid equity rich, right? Well, no. Follow me through this scenario to see which part of the magic trick you missed.
Suppose I own a house that in this market could sell for a million dollars. It matters not how much I owe on it, if anything. It matters not what I paid for it, if anything. I sell it for a million dollars. Now, if I want a house in a similar neighborhood, or a similar size, you know, say an exact replica of the house I just sold, how much will I need to pay? Right, a million dollars. So how much have I gained through this red hot market? Nothing.
Still not seeing it? Ok, let’s try it this way. Suppose I buy a house for a million dollars. Now suppose the market tanks. I sell my house for a measly $10,000. Calamitous, right? No. I’ve lost nothing. What would it cost me to buy an exactly replica of the house I just sold? $10,000. Before the sale I had a house that the market valued at $10,000. After the sale and the buying of the other house I have a replica of the first house valued at $10,000. Samesies. What did I lose in this burst bubble market? Nothing.
In both scenarios I had a house and after selling it I’m able to buy a house that costs what I sold my house for. Moving from one market to another, moving from one sized house to another may change up things a bit but the bottom line is that whether it’s a buyer’s market or a seller’s market makes little difference if you’re both a buyer and a seller.
The key to understanding basic economics, it seems to me, is never leaving part of the equation out. Henry Hazlitt’s classic, Economics in One Lesson, which I commend most highly to you, upended the old saw that breaking things is the path to wealth simply be doing just that, showing the part of the equation we leave out. When we think we’re getting a free lunch, we can be certain we’re not looking at the whole thing. We know that because there isn’t such a thing as a free lunch. Wealth doesn’t come by invisible and unknowable forces but by creating it. That means working, producing, meeting the interested of consumers who will freely pay for what you provide.
Buying low and selling high is all well and good. But if you’re buying the same thing you’re selling and at the same time, you’ll not likely find yourself getting richer or poorer.
The question is what is the real value? True worth is anything compared to the work of Christ. If God assumed any worth in this world less than the value of Christ, He would devalue the passive and active obedience necessary to meet the demands of the law. This begs the question: is there another law of rewards and penalties? Why should God make a law requiring all free moral agents to meet the same requirements as the one perfect man? Because God created the earth with the same value system. The question arises: Does God give everything that he has created a certain value?Of course, God values everything. Otherwise there would be no reasonable standard by which the perpetrator would be punished. If God had no value in his masterpiece, why should he care if it is being disrespected? Hence, God created full diversity to work together in perfect unity to achieve the perfect value of His purposes. What happened when sin brought the curse? If everything were designed to fit together, the depreciation in clutter would be subtracted. Therefore we depend on the order of creation to establish our personal worth. If the law is redefined, it is theft. That is why God works in the death of old and new life. Our worth is more than the earthly system.We are valued by the death of our opposition. We are rewarded for the worth of Christ’s work for us. We can lose things in this world, but we will be rewarded in eternity.
This is more understandable
The question is, what naturally gets tangible value? True worth is anything that can be accurately compared to the complete work of Christ. In this ideal world, if God were of less value than the value of Christ, He would devalue the passive and active obedience necessary to fulfill it. This begs the question: is there another law of tangible rewards and penalties? Why should God formulate a moral law that requires all free moral agents to faithfully follow the same requirements as the one ideal Human Being? Because God intentionally created the fertile land with the same value system. The fundamental question arises: does God carefully arrange every thing that has produced a certain value? Not surprisingly, God values everything. Otherwise, there would be no reasonable yardstick by which the likely perpetrator would be adequately punished. If God just had no value in his cinematic masterpiece, why should he really care if he was not respected?Hence, God appropriately encouraged great diversity to work together in absolute unity to realistically attain the perfect value of His moral purposes. What happened when sin undoubtedly brought the curse? If everything were carefully designed to fit together, the write-off would be deducted from the mess. Hence, of course, we depend on the moral order of divine creation to adequately establish our personal worth; if the moral law is redefined, it is organized robbery; therefore God works in the eternal death of old and new life; Our inestimable worth is The death of our organized opposition holds us in fair value. We are richly rewarded for the invaluable work that Christ has done for us. Ordinarily we can consume necessary things in this world, but we will be richly rewarded forever.