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No. The $8 that was 'used' to create the beer passes through the hands of the brewer's suppliers and their suppliers, back into the wider economy. It is a mediu
by vannevar 9y ago
No. The $8 that was 'used' to create the beer passes through the hands of the brewer's suppliers and their suppliers, back into the wider economy. It is a medium of exchange, not a consumable. It does not leave the system, short of someone literally destroying it. Economically, the only question is how fast it moves and how many productive assets it leaves behind as it travels its path through the economic network.
- cam_l 9y agoyes..and the economy is much more complex than that. even if I just take the eight bucks and burn it, the exchange value of the rest of the money in society increases. ..because both wealth and money only really exist in relation to the people that use it.