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This is true and I'm surprised at how little it is discussed and how long it took me to understand this simple fact. if you have a bunch of participants with m
by chronolitus 5y ago
This is true and I'm surprised at how little it is discussed and how long it took me to understand this simple fact.
if you have a bunch of participants with money, and create new money,either you 1) give each participant an equal amount (this drives relative wealth towards equality) 2) give each participant an amount proportional to their wealth (result: nothing changes, relative wealth of all participants is the same) 3) you give to some and not others (all youve done is funnel relative wealth from some to others, while
pretending you have created money)
in real life, 'money creation' is almost exclusively 3)
- spiralx 5y agoMoney is created by banks when they loan money, so none of those apply.
- chronolitus 5y agoI agree with the first part. But as long as money is created, it has to be either 1), 2), or 3). And in the case of banks, it's certainly not 1) or 2).