Achilles, I am not sure I understand your question, if bread is the only product produced by everyone, you put us back to about 3000 years ago, when every one was toiling 18 hours a day to provide bread for himself. There is no trade, who needs gold or money? In a real economy, investment capital flows to where it thinks that the best returns are available. That creates the major up and downs of economies as too much capital identifies a "good business opportunity", that segment becomes "overcrowded" and over supply negates the initial tenet of that investment. If bread is the only thing produced and excess bread is produced, the marginal bread which is sold and not consumed by its producers will indeed fall in "price", whether the price is in gold, polished stones or pounds of salt. By the way, look at wheat and corn, a real calamity in pricing there right now.
Zeev |
