According2Sam #120 'Trust'
Money has changed a lot throughout the millennia of human civilization. It's evolved from clay tablets, to metal coins, to papers notes and even digital currency. One thing that has not changed in those thousands of years is what makes money work, and how it is valued. That one thing is trust. Without trust money is nothing more than clay, metal, paper and digits. The only thing that makes those items money is that a group of people have agreed it is money and they are willing to trade their labor, products, and services for those items. However, on the flip side, if a civilization loses trust in their money it can cause an economic catastrophe that can destroy nations. This is something that is worrying economist like Lawrence (Larry) Summers who believes some Americans are losing faith in our institutions, and thereby losing trust in our money. He believes this loss of trust is contributing to inflation and the overall economic downturn. Are these concerns supported by facts, are Americans and other nations losing trust in the dollar, and if so, why? Join the conversation and get answers to these questions and more on According2Sam episode #120.
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