Category Archives: economics

Economics of Human Valuation

(My evolving thoughts that extend from https://www.jetpen.com/blog/2010/06/20/currency-of-goodwill/)

The currency of life is life-energy. When we give things of value to someone to improve their well-being, whether it is material or intangible, we transfer life-energy from ourselves to the recipient. The esteem that we hold for others is counted in life-energy credits and debts registered in our personal accounting system. For strangers who we hold at arm’s length there is a direct conversion of life-energy into monetary units when we conduct transactions. Even then, the quality of such transactions is accounted for with non-monetary life-energy to account for goodwill that is earned or extinguished.

currency of goodwill

Success and failure in life and our relationships—personal and professional—relies in large part on goodwill. Goodwill is measurable. We maintain an account for every interpersonal relationship. We trade in goodwill. It has a currency.

People wonder what makes them liked or respected or appreciated. We hold others in esteem in proportion to the amount of goodwill they’ve accumulated in their account. If someone has been kind and thoughtful in the past, their account carries a higher balance. If someone has done many favors and has called in very few of them, they have earned a wealth of goodwill.