Friday, February 7, 2014

Money

I have always been confused by the concept of money.

It only has value because it is artificially scarce.

A nation that prints money can be bankrupt.

$100,000 in rural Illinois is not the same as $100,000 in Silicon Valley(at least in what you can buy with it).

We solve the problem of most people not having enough money, by raising minimum wage... which in turn just makes everything else more expensive, leaving them just as lacking as before.

Bartering makes sense to me.

I have something you want. You have something I want. Let's trade.

Now, I understand that bartering is definitely not scalable in the global economy... so money is what we have.

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