Friday, February 12, 2021

Money doesn't even have to grow on trees. It's numbers in computers.

I think one of the world's biggest problems is that people take money too seriously. Money is an artificial creation. It doesn't even need to grow on trees. Civilizations create it by computer; these days.

Problem is, people and technology have to work to create the goods and services that money buys. If too much money is created, it causes inflation; like in Venezuela; an extreme case.

We have some ways to go before the inflation of creating too much money turns USA into Venezuela. We still have a lot of leeway to create enough money to help us cope with the virus and other needs without raising taxes.

Maybe raising taxes; especially on people just parking money and not really using it; is a good idea in my opinion, but not politically expedient.

In reality, money regulates the economy of goods and services. It allows us a path to building the economy, but the economy has problems. Money is basically like poker chips, I guess.

As the economy gets too convoluted and debts get too high, it may be time for a "debt Jubilee." This is when impossible debts get forgiven, I guess.

It doesn't come without costs. Home values, bank balances, retirement savings and so many expectations all have to be on the table if there is to be a debt jubilee since debt owed is someone else's expectation of net worth.

At least that is how I see it.

If we are to navigate these changing times, address the current needs as well as climate change, everyone's expectations about their net worth will have to become more flexible.

Expectations are hard to let go of, but we can't all have it all, all of the time.

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