http://www.forbes.com/sites/steveforbes/2014/09/30/money-is-not-wealth-but-it-helps-create-wealth/
This article is about how our ideas of money are erroneous, especially the ones that policy makers have. Money, in this article, is presented as a symbol of the economy, but not the economy itself, production of goods and services is. Kind of like what we learned in class already about money.
Midway through the article some different economic theories are presented, which I think is the most interesting part of the article, because we usually just learn one way of thinking of the economy, but there are many ways to approach the economy. The article closes with the idea that the government cannot create wealth in economy, even though it controls monetary policy. The real creators of wealth in an economy are companies.
Jackie, this is a very interesting article. Money isn't the way of assessing the economy, it's through the goods and services. I like how the article confronts the Keynesian economic theory and clarifies that the only real single economy in the world is the world economy. There is no other true single economy even if they claim to be. Overall, the world economy is affected by the companies, the real creators of wealth.
ReplyDeleteI agree that money really means nothing. It is only used to smooth the transfer of goods and services because it is more effective than barter. We kind of learned about this in class on Friday when we played that game about purchasing power. It doesn't matter which currency you have, you just want to get the most goods and services out of it.
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