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Because the USA is not a household or a business, and in fact issues the currency? I'm not an economist, much less an econometricist, but I see that every day
by bediger4000 4y ago
Because the USA is not a household or a business, and in fact issues the currency?
I'm not an economist, much less an econometricist, but I see that every day more rocks, trees, water and soil are turned into buildings, vehicles, works of art, infrastructure, etc etc.
Very obviously we as a country need to adjust the amount of currency in circulation to account for the fact that there's more goods every day, above and beyond breakage, spoilage and destructive consumption. We want to adjust this amount up almost all the time, just so $1 in currency continues to buy the same amount of goods.
If we have a constitutionally balanced budget, I don't think we as a country can adjust the amount of currency up. Such an amendment would cause deflation - money would be worth more. The incentive to invest or spend would disappear. No entrepreneurship would be necessary. Bad situation all around.
This is a patently dumb idea.