Monday, October 11, 2021

The Spin on Spending

Anyone who has ever bought anything knows that the “cost” of something is not the net effect on your debt balance. If you bought $85 worth of groceries and paid from your debit account, you wouldn’t claim the cost of the purchase was zero. If you spend $85 on groceries, that’s $85 less you have to invest, or to spend at the movies or in restaurants. Clearly, that out-of-pocket cost is real to you—it’s a reasonable proxy of the monetary value of what you give up to make the purchase.

Read the rest of Ryan Bourne at The Dispatch.

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