layman_economics on Nostr: Why do we need money? When we work (e.g. farming) and we want to exchange the product ...
Why do we need money?
When we work (e.g. farming) and we want to exchange the product of our labor with something we want (e.g. exchanging the rice we produced with some eggs), it’s difficult to find someone who has the eggs that we want...and also happen to want some rice at the same time!
With the creation of money, we no longer need to find someone who has something that we want (e.g. eggs)…and also want to have something we have (e.g. rice) at the same time.
We just take the product of our labor and exchange it with money instead. And then, we can use that money to get something we want.
In other words, money is the vessel that holds economic energy.
Nowadays, the vessel that we have has a problem. It is leaking.
Years ago, we could work as a simple clerk and our monthly salary held enough economic energy to buy at least 3 ounces of gold.
If we decided to save that monthly salary, how many ounces of gold can that amount of money buy today?
Not even 20% of a single ounce of gold can be bought!
Our money is clearly leaking!
Who then made our vessels leak?
The government!
The more money printing it does, the less economic energy remains in each single banknote of ours.
This is clearly theft!
But this theft has been ‘covered up’ with narratives like => ‘We need a little inflation to stimulate economic growth’
This kind of narrative is, of course, false.
Even if this kind of narrative is true, what this sentence really means is this => ‘We need to drain a little of economic energy in your vessels so that we can all get richer’
What a load of contradictions!
#economics #inflation #money
When we work (e.g. farming) and we want to exchange the product of our labor with something we want (e.g. exchanging the rice we produced with some eggs), it’s difficult to find someone who has the eggs that we want...and also happen to want some rice at the same time!
With the creation of money, we no longer need to find someone who has something that we want (e.g. eggs)…and also want to have something we have (e.g. rice) at the same time.
We just take the product of our labor and exchange it with money instead. And then, we can use that money to get something we want.
In other words, money is the vessel that holds economic energy.
Nowadays, the vessel that we have has a problem. It is leaking.
Years ago, we could work as a simple clerk and our monthly salary held enough economic energy to buy at least 3 ounces of gold.
If we decided to save that monthly salary, how many ounces of gold can that amount of money buy today?
Not even 20% of a single ounce of gold can be bought!
Our money is clearly leaking!
Who then made our vessels leak?
The government!
The more money printing it does, the less economic energy remains in each single banknote of ours.
This is clearly theft!
But this theft has been ‘covered up’ with narratives like => ‘We need a little inflation to stimulate economic growth’
This kind of narrative is, of course, false.
Even if this kind of narrative is true, what this sentence really means is this => ‘We need to drain a little of economic energy in your vessels so that we can all get richer’
What a load of contradictions!
#economics #inflation #money