Purchasing Power

  • The Ayn Rand Letter
    Purchasing power is an attribute of producers, not of consumers. Purchasing power is a consequence of production: it is the power of possessing goods which one can trade for other goods. A “purchase” is an exchange of goods (or services) for goods (or services). Any other form of transferring goods from one person to another may belong to many different categories of transactions, but it is not a purchase. It may be a gift, a loan, an inheritance, a handout, a fraud, a theft, a robbery, a burglary, an expropriation. In regard to services, however (omitting temporary or occasional acts of friendship, in which the payment is the friend’s value), there is only one alternative to trading: unpaid services, i.e., slavery.