The Equanimist

A Short Note on the Primary Superiority of Fiat Currency-based Socioeconomics to Commodity-based Socioeconomics

Posted in *HIGHLIGHTS, Economics, Economy, Philosophy, Socioeconomy by equanimist on June 10, 2010

Work is not used to put people to money (so long as “excess” of any product can be created) but money is used to put people to work.

Fiat currency is not a commodity but a tool. That it can be used as currency of actualized human potential is its primary virtue. Otherwise, we might as well use something like gold, which may tend to approximate (but is no) ideal fixed-quantity commodity.

As has been demonstrated time and again, there is an extremely acquisitive and (very nearly) equally thrifty minority who will part with what they’ve got “over their dead bodies”.

Still, there is a human potential greater than the relatively small portion of currency that this de facto steward class makes available to effect productivity and, otherwise, peace and prosperity.

Fiat currency takes control of this natural tyranny putting people to work (and, otherwise, keeping others from it). The work people do (and, otherwise, the work that they don’t do) makes our lives better.

Fiat currency representing the work that has been done and approximating, at any given instant, that which can be done by same population with improved technology in future accomplishes in this way what commodities cannot: stabilization as the result of primarily peaceful transitions—a modulation (i.e., minimization) in amplitude of cyclical socioeconomic transitions between peace and war, if you will.

Commodity-based socioeconomics, on the other hand, must include physical reclamation of actual assets for redistribution or debt (forgiven cyclically) in place of fiat currency! That entails a lot of dead bodies, as has been demonstrated.

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