Thursday, September 2, 2010
Money is merely a unit of accounting
Modern money is merely a unit of accounting. When people ask, "Where does the government get the money to pay for this or that?" they fail to understand that the government's "money" is merely an accounting entry on a spreadsheet. To better understand this think about where you got the number "1" the next time you type it on your spreadsheet? Or the number "1000?" Or the number "100,000,000,000,000,000,000?" You just typed it in. Same thing with modern money. Many people have trouble with this idea because they still believe that money is something we dig up out of the ground.