Quote:
Originally Posted by sortie
You forgot to mention how worthless money is.
After all it's just paper.
People are so stupid because I can spend $20 with you and you can spend it again and the person you spend it with treats it just like $20!!!
Don't they realized that it lost value when I spent with you since it is now
USED!!!
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Yea smartypants, there's a difference between wealth creation and speculation. If at every point when money changes hands, wealth (ie, something desirable) was in fact created, then money keeps (or increases) its value.
If money just merely passes hands, without any wealth being created, money actuyally loses value. It's how inflation is born, and it's why wealth redistribution attempts in the form of money redistribution are bad (as the russians have amply proven with their communinst experiment). This'd also be why theft isn't commonly added to the GDP.
Failure to understand these would, I guess, explain what happened to the US economy past decade.