Posted on 03/20/2014 2:14:19 AM PDT by Cincinatus' Wife
The value has *everything* to do with whether the money is traded for production of goods and services, or whether the money is handed out for nothing. Printing money and handing it out does nothing to increase the quantity of goods and services. Throwing more money into the system without adding any value in the form of goods and services cannot have any effect *other* than to cause inflation.
A question: how well do you understand mathematics? If you are math illiterate, then I am afraid that you are incapable of understanding the relationship between quantity of money and quantity of goods and services.
I think they are mathematically illiterate (or innumerate, to use the proper word). The laws of economics (the real ones, not the fake ones invented by socialists e.g. Keynes) are as absolute and unchangeable as the laws of physics. But someone who is incapable of understanding mathematical relationships will never understand that.
Unfortunately, the innumerate major in subjects like sociology--where they can come up with all kinds of ideas that can never possibly work in the real world, and they don't even understand that.
Yes. In fact, with all those trillions of worthless dollars pumped into the economy, I do not understand why inflation is as low as it is. But maybe that's why the stock market is so high, it's the bubble inflating to absorb the extra cash. I'm not an economist, so I can only speculate.
Pretend I'm clicking on the "thumbs-up" button.
And btw, how is that different than what we are doing now? We're running huge deficits already, with trillions and trillions of unfunded liabilities looming. However the money is spent, the effect on inflation is the same.
None of that means I support the idea. Of course I don't support what we're doing now either. I'm just comparing the idea vs. what we have now. It might have some advantages in terms of fairness, and motivating people to work and save. I've been accused of sounding like a Democrat, but the Democrats would never support any idea that eliminated millions of unionized government bureaucrats.
It’s called ‘enslavement’.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.