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This is and is not true. The implicit value of a currency is backed by being able to tax the citizens. This is why there are federal but not state / province le
by willhslade 5y ago
This is and is not true. The implicit value of a currency is backed by being able to tax the citizens. This is why there are federal but not state / province level currencies as the friction of conversion is a dead weight loss.
- alecbz 5y ago> The implicit value of a currency is backed by being able to tax the citizens. Elaborate? Not sure why this would be true. I'm pretty sure there are plenty of "commodity currencies" (shells, salt, even gold) that achieved value without some central agency controlling the currency that could also levy taxes.
- willhslade 5y agoAll of the examples are currency because they can't be counterfeited. You can't print gold, silver or seashells.
- sentrysapper 5y ago"Trust is the raw material from which all types of money are minted". You make a valid point, I do trust that our government will come to collect what's due from the citizens, but what about the corporations? Worth noting there are quite a number of what are known as Community currencies still active in the US & Canada: USA: https://en.m.wikipedia.org/wiki/List_of_community_currencies_in_the_United_States https://en.m.wikipedia.org/wiki/List_of_community_currencies... Canada: https://en.m.wikipedia.org/wiki/List_of_community_currencies_in_Canada https://en.m.wikipedia.org/wiki/List_of_community_currencies...