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Right but the problem is money isnt value itself. It only represents value. Thus it's not a realistic representation of value because real value degrades while
by corethree 3y ago
Right but the problem is money isnt value itself. It only represents value. Thus it's not a realistic representation of value because real value degrades while money does not.
Imagine I sell a house for 2 million. Now that house burns down. Basically that money now represents value that doesn't exist anymore. If this was an island economy consisting of 1 burned down house and 2 million dollars the economy essentially now has 2 million dollars in paper bills representing nothing.
This is why money is inflated deliberately. To keep the representation from getting too unrealistic. It incentives you to move your value into more realistic representations of value.
In short money already does have an expiry date or something equivalent. It's inflation.
- thriftwy 3y agoNew value is being created all the time. The actual value is not the house; it is your desire to have that house, for which you are going to be ready to trade some money (either to buy or to rent). The total value of a country usually grows with time.
- corethree 3y agoThen print money at the rate at which new value is created. Which is also what occurs in a sense. What isn't realistic is I save money and that money grows it's value with the economy while I sit on my ass, contributing nothing. A little inflation makes the situation more realistic.