Executive Pay: The Curious Case of Carlos Ghosn’s Arrest
February 12, 2025
Capability Maturity Models When organizations want to be certified for their quality or operational excellence, they usually turn to quality frameworks like Six Sigma, Kaizen, or TQM. These are just representative of the different quality and operational excellence models and there are many other frameworks as well. Similarly, there are process capability models like the […]
The world is facing a scarcity of water. Each year about 3.4 million people die due to the scarcity of water! Several million more fall sick due to the poor sanitary conditions of the water supplied. The current situation is proof of the fact that the global water supply is not being managed properly. Many […]
European nations have been following a controversial policy called the common agricultural policy. Under this policy, European governments have been giving subsidies to their own farmers. These subsidies artificially lower the price of some crops leading to market distortions. This is the reason why Europe’s common agricultural policy has come under severe criticism many times. […]
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The United States Democratic Party has been praising the economic arrangement in Nordic nations for a very long time. Right from Bill Clinton to President Obama, they were all fans of the so-called Nordic socialism and wanted to introduce the model in America as well. The Democratic primaries were riddled with both Hillary Clinton as […]
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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