Quote:
Originally Posted by BlueMelon
Ye they make a profit.. But off money thats already in the economy. If the money is destroyed after the auction then it will help right?
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you're exchanging money for an item.
say a hat sells for 500k in the auction house. 500k will be removed from the money supply of the economy, but in return an item that is worth 500k is being put into the economy. since generally rare items sell for a lot more than bought, we're going to assume that the hat will now sell on the market for 600k, 100k more than what it was bought for.
eventually from jobs, the 500k will be put back into the economy. the 500k that was removed from the auction doesn't even matter anymore because of all the money made from jobs. so in the end, you didn't remove any money from the economy, and you also put an item in the economy that's worth a lot, which is why auctioning items is bad.
any questions?