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.