What is Money? (plus Reading Habits w/ Dan Solin) (EP.207)
In today's episode, we share some updates from our Financial Goals Survey, respond to a listener who says we are wrong about dividends, and talk about Scout Mindset by Julia Galef. We then respond to a listener question about whether our comments in Episode 205 on private equity extend to private real estate. In our main topic, we unravel what money is by looking back at its origin story and the two competing theories about what it is. We discuss the ideological underpinnings of money and how these ideologies can make choosing a definition of money highly political. We end the episode talking to Dan Solin about his reading habits. Dan Solin joined us almost four years ago for an episode on evidence-based investing. Tuning in, you’ll hear how Dan finds the books he reads, what his favourite types of books are, and whether he recommends books to people, plus he shares why he believes reading is so essential, and much more. Don’t miss out on another well-rounded and informative episode of the Rational Reminder Podcast. Key Points From This Episode: An update on the progress of our Financial Goals Survey. [0:03:32] Your monthly update on the reading challenge and how to get involved. [0:04:52] An update from our limited crypto series and some of the feedback we’ve received. [0:08:00] This week’s book review: The Scout Mindset. [0:16:29] Simple set of tools to help you assess biases when receiving new information. [0:19:18] Following up on private investments concerning real estate. [0:24:32] Onto the main topic of the show with Dan Solin: money and what it is. [0:29:09] Where the perception and definition of money originated from. [0:31:00] Unpacking an alternative definition of money by Adam Smith. [0:37:32] The quantity theory of money and its application in the economy. [0:40:14] An interesting political aspect to forming John Locke’s theory of money. [0:46:49] Outlining of the history of opposing views on the theory of money. [0:47:25] A break down of the findings of an anthropological review investigating money. [0:49:47] How money is neither commodity nor quantity but rather a measure of credit. [0:51:32] The state theory of money and how it is different from other theories. [0:53:39] What sets the price level of money based on credit theory. [0:55:06] A discussion around money based on the several theories of what it is. [0:57:22] Why fiat money is not a derogatory term for currencies. [0:59:30] Some of the nuances regarding the definitions of money in a modern context. [1:00:07] Dan shares his reading habits as an author. [1:01:05] Whether Dan reads hard copies, audiobooks, or Kindle. [1:01:32] The difference between reading and streaming in Dan’s opinion. [1:02:08] Insight into some of Dan’s favourite types of book. [1:03:11] How he finds new books to read and what inspires his reading interests. [1:05:40] Ways in which Dan organizes what he reads and learns. [1:08:47] Whether or not he recommends books to other people. [1:09:33] Reasons why Dan believes it is important to read books similar to his latest book. [1:12:21] Dan’s advice for people that want to read more. [1:14:10]