Larry M.

asked • 04/04/19

Why do economists ignore the most important things about money?

Money is a physical object or is treated as if it were a physical object. Physical objects have social properties. Physical objects (money) can be taken from their owners against the will of the owners. (Theft, fraud, robbery, loss, destruction.) Physical objects (money) are amoral. (Money can be used to motivate any behavior whether good or evil.) Small physical objects (money) can be used in ways that cannot be controlled. (Organized crime, bribery, money laundering, tax evasion.) Changes in the ownership of physical objects (money) are two party transactions. Two party interaction is inherently unstable. An advantage in power can be used to gain a still greater advantage. (Wealth increases faster for the wealthy.) Physical objects (money) in trade falsely simulate a zero-sum relationship because what one party gains the other party loses. The supply of one physical object type is independent of the supply of other objects. (Inflation and deflation.) Physical objects can be counterfeited. These properties of physical object monies in whatever form or manifestation (coins, paper, accounts, salt) explain far more human behavior and relationships than do the physical properties of a currency. Why do economists ignore them?

1 Expert Answer

By:

Larry M.

Money is transferred from one party to another regardless of whether it is in currency form or in bookkeeping or accounting in computer processing. To deny that money is treated as if it were a physical object is to deny the obvious. Money does not come into existence when earned and does not cease to exist when spent. It goes from one party to another party just as if it were always a physical object.
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04/17/19

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