Quote:
Originally Posted by Dondilion
What if the cost of living were low, would income inequality really matter?
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The cost of living is low! I know that sounds weird right?
When we look at economics we have to look at who is driving it.
It doesn't take more labor to bake a loaf of bread today as it did fifty years ago. What has made the cost of bread rise in cost in those fifty years. If anything it should cost less with technology.
By not having a currency pegged to something with intrinsic value ie:"Money" all hell breaks loose. Something that can't be produced out of thin air that has value.
Since the USD is not pegged to anything but a promise to pay
lol Fiat Currency, A note of a promise to pay is all the USD is. It is not money.
Nothing stops the printing of currency so the presses run and run. But there is a problem to doing this. It's a dilution of the currency supply meaning it reduces the value of the currency in circulation. The value of your saved dollars are not the same as when you put them in the bank. In fact the interest earned does not keep up with this. So you put your dollar in and in short time it's only worth 50% it's value at deposit.
It's funny, not really
Most have no clue of what currency is, how it's born and who is doing it.