Executive Pay: The Curious Case of Carlos Ghosn’s Arrest
February 12, 2025
India and China are two of the fastest growing economies in the world. They are also neighbors and share a huge boundary spanning thousands of kilometers. However, they do not share an amicable relationship. India and China have fought a full-fledged war in 1962. Even after the war, skirmishes between the two emerging nations have […]
Much has been written about the way in which India was one of the few countries that was relatively unscathed because of the global economic crisis. Most of these narratives focused on how India managed to weather the storm in the dark days following the collapse of Lehmann Brothers. However, it cannot be completely said […]
The Age of Automation has Arrived Let’s face it! The Age of Automation is arriving if not already arrived and this has huge implications for governments, businesses, and individuals. Indeed, in a manner similar to the Industrial Revolution in the Nineteenth and the Twentieth century’s, the Twenty-First Century is already witnessing massive disruption due to […]
The production system design planning considers input requirements, conversion process and output. After considering the forecast and long-term planning organization should undertake capacity planning. Capacity is defined as the ability to achieve, store or produce. For an organization, capacity would be the ability of a given system to produce output within the specific time period. […]
Why is Growth Stagnant? We read in the print and online media about why governments worldwide are unable to revive growth especially since the Great Recession of 2008. We also read how policymakers are trying their best to jumpstart growth but are being unable to do so. Moreover, we see stock markets going up while […]
The past few generations have become used to money being issued by the government. Hence, there is an implicit assumption that maybe this has always been the case. However, this is not the case. Many people will be surprised to know that creating money was not always the job of the government. Private money was a reality before the government took it over.
Seeing the lax government policies, many critics believe that there should once again be a private money market. Anybody should be allowed to issue money and then the market should be allowed to decide amongst various monies like they decide amongst other products.
In this article, we will understand the concept of privately issued money.
At the present moment, the government has the monopoly over the issuance of money. Hence, if you live in the United States, only the federal government can issue money. Any other attempt at issuing money is called counterfeiting and is punishable by law.
However, this need not necessarily be the case. In the past gold and silver was considered money. Goldsmiths had created brands which allowed consumers to trust the purity and value of the gold that they were receiving. The dollar was originally a specific weight of silver! There is no reason why private parties cannot issue private money. Once again, the credibility of their money will be evaluated by the market. There are several major benefits of having a private money issuing system.
Private money markets are likely to have their fair shares of problems as well. Some of them have been listed below.
To sum it up, it is unlikely that modern governments will allow the fiat money system to be replaced by private money. However, it is possible to have such a system. In fact such a system has existed for most of recorded human history.
Your email address will not be published. Required fields are marked *