3 ms·
Seems like a horribly inefficient national defense strategy. A country is on the brink of having a war levied against them by a belligerent, and plead for funds
by subroutine 9y ago
Seems like a horribly inefficient national defense strategy. A country is on the brink of having a war levied against them by a belligerent, and plead for funds... some are scared for their life and donate their entire savings, others give nothing because they think/know their neighbors will.
Anyway, this is not a primary reason for having fiat money, but it is a reason.
- moduspol 9y agoYep. I certainly wouldn't want to go to war asking for donations if the other side can use a pen to put half the value of his country's money toward fighting me. It's definitely a benefit--it just also has the potential to be abused.
- jchavannes 9y agoAnd yet somehow America didn't lose WWII. This type of rhetoric (that we need big government to make decisions for us) scares me a little. Also, people don't need to be altruistic saviors, they can buy bonds.
- mcguire 9y agoNobody donated money (well, ok, maybe....), people bought treasury bonds of varying flavors, and intentionally devaluing your currency by "printing money" to pay for war expenses is essentially always the last thing you do before your government goes down in flames, one way or another---either you just lost the military war, or you destroyed your economy.