Free Capital to Finance “More”

A great idea without the capital to makeĀ  it happen remains just another missed opportunity. Tune in the TV show”Shark Tank” and you get a good idea of the important interplay between ideas and the where with-all to implement them. So what is this lubricant to ease us into a better future? Capital is deferred consumption. Early on someone realized that eating all the grain they found left no seed to plant and surely none to increase the acreage under cultivation. To have more meant setting aside “seed corn”. Put off eating the sheep and you can get more sheep and warmth while you wait. If we have more grain, wool or meat than we can presently use we can trade it for other stuff. In a nutshell, we have “More”.

The problem arose when trades were inconvenient because of time, place or both. Entity A has fish to trade for wine, entity B has wine but doesn’t need fish at the moment. Entity C needs fish and has pretty rocks from which metal could be extracted to trade. Now A findsĀ  it could trade C’s pretty metal for B’s wine. More importantly, where wine and especially fish could spoil and were bulky to store, the shiny metal could be shaped for easy storage or trade and it never spoiled. With these attributes it performed a further function, a store of value.

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