pull down to refresh
21 sats \ 5 replies \ @Bell_curve 27 Jul \ on: Monetary inflation is NOT taxation econ
How is currency devaluation a production of a good?
How is currency devaluation non coercive?
Or hyper inflation?
Carl Menger notes in "Principles of Economics" (1871) that money is a good. It emerges naturally as a medium of exchange and is valued as a good due to its usefulness in facilitating trade.
By issuing dollars, you're producing a good, just like you do by growing potatoes. Just like you can use the good that are potatoes to satisfy your hunger, you can use the good that are dollars to make a kite out of them for your entertainment, or as kindling, toilet paper, or a medium of exchange.
It so happens that some people, due to a lack of education, use it as a store of value.
How is devaluation coercive? Someone puts a gun to your head and says "Accept this shitcoin of mine or I'll pull the trigger"?
Are the people behind Shiba Inu coercers too?
reply
From Brave search AI:
According to Carl Menger, money originates from the marketplace, not from government edicts. In his work "On the Origin of Money" (1892), he argues that individuals decide what the most marketable good is for use as a medium of exchange. This medium of exchange solves the difficulty of exchanging goods directly, as exemplified by a chicken farmer trading chickens for gasoline.
Key Insights
Money develops spontaneously through the actions of individuals in the marketplace, rather than being imposed by authorities.
The most marketable good becomes widely accepted as a medium of exchange, facilitating indirect trade.
Menger rejects the idea that government decrees or agreements between individuals create money.
Example
To illustrate this concept, Menger uses the example of a chicken farmer who wants gasoline. Instead of trying to find another farmer who directly needs chickens and has gasoline to spare, the farmer finds it easier to trade chickens for a widely accepted good (money) and then use that money to acquire gasoline.
Influence**
Menger's theory of the origin of money has had a lasting impact on economics, particularly in the development of the Austrian School. His ideas continue to influence contemporary discussions on the nature of money and its relationship to the market.
Menger believed that gold and silver were the precious metals that were adopted as money for their unique attributes like costliness, durability, and easy preservation, making them the "most popular vehicle for hoarding as well as the goods most highly favoured in commerce."[11] Menger showed that "their special saleableness" tended to make their bid-ask spread tighter than any other market good, which led to their adoption as a general medium of exchange and evolution in many societies as money.
https://en.wikipedia.org/wiki/Carl_Menger#Money
Ask the people in countries suffering from hyper inflation like Argentina.
Dollars are not potatoes.
Anyone from Argentina? @didiplaywell
reply
Indeed! Yet while hyperinflation makes the issue more evident, it's not less of a theft in any fiat system.
reply
How do dollars differ from potatoes?
reply
Your question is an insult to people who are starving, who live in penury, who struggle to make ends meet such as food and shelter
reply