Executive Pay: The Curious Case of Carlos Ghosn’s Arrest
February 12, 2025
Introduction Businesses require adequate capital to succeed in business environment. There are two types of capital required by business; fixed capital and working capital. Businesses require investment in asset, which has to be utilized over a longer period of times. These long-term investments are considered as fixed capital, e.g. plant, machinery, etc. Another type of […]
Prior to the introduction of Six Sigma philosophy, there was a debate as to whether Six Sigma is a goal worth pursuing. Many experts in the area of quality believed that wastage was a way of life. Trying to eliminate wastage would cause more wastage. They believed that it was possible to eliminate waste but […]
Organizations are decision-driven. The success or failure of each decision impacts a company’s strategy directly or indirectly. If organizational decision making is aligned with the right kind of artificial intelligence system, chances are that the performance of the organization will improve to a great extent. The alignment of human intellect with computerized decision support systems […]
What is Practical Intelligence, Why Is It Important, and How It Works in the Real World The world admires Street Smart tinkerers and Go Getters who get “things done”. For instance, how many times haven’t been in awe of the Fixers and the Technicians, who with little formal education manage to repair mechanical and electrical […]
Recently the Dow Jones index faced a drastic fall. This fall was partly because of the fears of inflation that were sparked by increasing employee wages. This is because employee wages have been stagnant in America for close to a decade now. The drastic short-term rise was attributed by many to be the result of […]
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.
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