The Size of the Social Unit: Banking

#economics #bank #marxist

Barter indicates humans prefer more to less. Money began as a commodity. It could not have begun any other way, regression theorem proves this. I have explained this elsewhere, and other economists have explained it as well. Some commodities are more marketable and serve as money better. The precious metals outperform others due to their unique qualities. There is a reason gold has been used and not artwork.

Over the years, states have replaced gold as money with paper. Believe it or not, you used to be able to exchange your dollar for a real commodity, usually gold. Try to exchange that note you have. You can’t, it’s just paper. Why would states want to make a central bank to print money? Printing money is easier than mining for gold, and its an easy source of revenue. Gold can’t be printed. This is helpful to the early receivers, but does not confer any social benefit. I repeat, there is no social benefit to printing money.

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