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Purchasing Power

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.

.Copyright © 1986 by Harry Binswanger. Introduction copyright © 1986 by Leonard Peikoff. All rights reserved. For information address New American Library.

Acknowledgments

Excerpts from The Ominous Parallels, by Leonard Peikoff. Copyright © 1982 by Leonard Peikoff. Reprinted with permission of Stein and Day Publishers. Excerpts from The Romantic Manifesto, by Ayn Rand. Copyright © 1971, by The Objectivist. Reprinted with permission of Harper & Row, Publishers, Inc. Excerpts from Atlas Shrugged, copyright © 1957 by Ayn Rand, The Fountainhead, copyright © 1943 by Ayn Rand, and For the New Intellectual, copyright © 1961 by Ayn Rand. Reprinted by permission of the Estate of Ayn Rand. Excerpts from Philosophy: Who Needs It, by Ayn Rand. Copyright © 1982 by Leonard Peikoff, Executor, Estate of Ayn Rand. Reprinted by permission of the Estate of Ayn Rand. Excerpts from “The Philosophy of Objectivism” lecture series. Copyright © 1976 by Leonard Peikoff. Reprinted by permission. Excerpts from Alvin Toffler’s interview with Ayn Rand, which first appeared in Playboy magazine. Copyright © 1964. Reprinted by permission of Alvin Toffler. All rights reserved including the right of reproduction in whole or in part in any form. Used by arrangement with Plume, a member of Penguin Group (USA), Inc.