The man in the street does not need more money. He needs more of the things money can buy. This means that he needs greater output. He says, "I need more money," but he means, "I need greater output with which to buy scarce consumer goods." The economists say, "The economy needs more money," because they believe that people's output can increase only when there is an increase in the money supply. The state or the state-sanctioned banking system must supply this extra money.Gary North (What is Money? Pt 12 Why Central Bankings Persists) 11/4/2009
Wednesday, February 10, 2010
Money and Things
Subscribe to:
Post Comments (Atom)
The unfortunate thing is that greater output usually requires some sacrifice. eg: you sacrifice 4-5 years of work time and go to school so you can hopefully get a better job.
ReplyDelete