Comment by andrewstuart2
8 months ago
It's not distorted so much as it is relative to value. But that's not for tech, it's just for business in general. If you can make an extra $500k because you spend $250k, and there's not a better way to spend that money, then it makes sense to spend the money as long as you can afford it (or borrow it).
I'm not saying that you shouldn't spend such a large sum when it makes sense and I'm definitely not saying that a distorted perception of money is limited to tech.
However the value of money is quite absolute, it's dictated by the exchange rate after all. If $250,000 is nothing more than "pretty big", then your perception is either quite distorted or the rate of inflation is much more severe than I understood it to be.
Everything is relative.
My previous employer had daily revenue in the area of $10 million.
$250k barely registers. They've got more pocket change than that lost in their couch.
Anything that's less than an hour worth of revenue is a small expenditure. To them, this extortion would probably elicit the equivalence of a shrug, or at most a mildly annoyed grunt
The value of money depends on where you live. In the Bay Area, you could stop working for a year or maybe two with that much money, especially if you didn't care about health insurance. You can call it distortion if you want.
I understand that you could also take that money and move somewhere it would last for a long long time.
Insisting that money is absolute does not seem accurate to me. That is sounds like making the claim that the things you could buy with that money are the same everywhere.
> value of money is quite absolute
You are conflating price and the value. I assure you that to a billionaire, $250,000 is of nearly no value at all.
In other words a billionaire has a distorted perception of money. Also, water is wet.
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