"Rand Paul is a gold bug. And he does not understand the nature of money and wealth in a modern economy."
With your superior understanding, do you think you could answer the question Rand posed?
If wealth can be created de novo, why should we work at all?
posted on 07/23/2020 2:16:39 AM PDT
by Garth Tater
(What's mine is mine.)
To: Garth Tater
No society can create wealth "de novo" for itself by simply issuing currency. Indeed, even a sack of gold coins does not constitute wealth unless there are things available for purchase that one needs or wants to purchase. Similarly, dollars are not wealth without things to buy and people willing to sell those things or to perform useful services in return for those dollars.
In the modern era, dollars and all other functional fiat currencies are just accounting entries that reflect the availability of things and services for purchase. New currency can be created, but unless it is in balance with the supply of goods and services, every new unit of currency diminishes the value of all other currency.
In the end, there is no escaping the need for work. Unless people are willing to work to produce and sell goods and services, a sack of gold coins or a stack of hundred dollar bills have no worth. This can be brought home to the slow learners by passing out wads of Monopoly money and telling them that they are now rich if they can find people willing to sell them anything in return for it.
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson