
Originally Posted by
Raype
To put it another way, money is simply shares in your country's wealth. It's a bit like a stock market. The more shares, the lower the value of each individual share. The money itself isn't what determines what it's worth, it's the value tied to it. This value drops every time someone creates more money.
In this case, it doesn't matter whether you have one slice at 4 or 2 slices at 8, they both have the same value. The way inflation works, you don't make more money or lose money, you generally end up right back where you started, because each individual dollar has a lower value tied to it. Ever notice how once everybody across the economy gets a pay raise shit gets more expensive? Same idea. That extra money has to come from somewhere. That "somewhere" is someone making smaller and smaller slices. You might have more cash in your pocket, but you're now paying out a bit more for everything, so ultimately you have no more cash than before. Way back people got by on dollars and cents. But more money had to come up for various reasons. Eventually, we got to the current state where cents are pretty much pointless and dollars have to be fairly numerous to do anything.
That actually makes sense... Cool.
I can't believe I got the admins to give me a Sesame Street username.