Thread: Money
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Old 09-12-2004, 01:44 PM   #14 (permalink)
Scott
Tilted
 
So what you're saying is, you want more money made so anyone and everyone to make the same amount of money? You think that will give everyone a living?

Friend, you may want to look into taking an economics class sometime.

To begin, the government has nothing to do with controlling our money supply. The Fed is who is responsible for our money supply. The government does not control the Fed; the Fed does not control the government. The Fed is basicly our nations 'main' bank.

The Fed controls the money supply primarily via buying and selling securities. Also, the Fed controls employment and inflation as well by raising and lowering short-term interest rates. Basicly, if the short-term interest rates are set 'correctly,' there will be more borrowing, making more spending, raising demand, creating more jobs, and therefore keeping our long-term interest rates low. If the Fed raises the short-term interest rates too high, inflation will grow. If not enough, unemployment will then be the problem. The key is keeping the correct balance between the two.

Another interesting fact is, the unemployment percentages that you see reported, those are the only ones actually reported by unemployment offices. If someone is drawing unemployment, but still working for a 'cash only' income, they will be considered unemployed, but actually are in fact employed. The same goes the other way around. Some people will quit their jobs, but are perhaps too ashamed to show their face at the unemployment office, and are therefore still considered employed. Do you see why these figures we're told aren't exactly correct? These are the figures the Fed has to work with to help our economy grow at a stable rate.


I won't continue on with this, because I'll be typing for quite some time. You need to take the time and learn about our economy, the Fed, how unemployment is fought, and how our money supply is kept stable. That may give you a better understanding of why not everyone will have a decent living -- some people just won't work for it.

Our country awards people for working hard, and I believe that is how it should be. There are also several ways to argue it also awards people for being lazy, but that's a whole different political subject.

Scott
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