Sunday, August 07, 2011

Good as gold

I often hear about people complaining that our money has no intrinsic value because we're no longer on the gold standard.

I guess it depends on your definition of "intrinsic value." All gold has in that respect is its rarity, because it isn't particularly functional. Its value is an arbitrary concept decided by people. Which, come to think of it, is exactly the gold-standard crowd's complaint about cash.

Everything that has value does so because we as a society have assigned it some. And I don't see any virtue in asserting that our money has no worth. It's the rest of us who don't feel that way who ensure that it does.

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