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No; if we write each other IOUs for a million dollars, our net worth remains the same, right?
by NovemberWhiskey 5y ago
No; if we write each other IOUs for a million dollars, our net worth remains the same, right?
- Cheezmeister 5y agoNot if you can both Doublethink cleverly enough.
- JanisL 5y agoWell on the surface it might seem like it but there's a huge amount of nuance here. What happens if the act of writing these IOUs creates a situation where economic activity can happen that creates real wealth (or destroys real wealth)? This hints at one of the crucial dynamics when debt interacts with money which is that the value of money is not constant over time in a debt-based monetary system.