The market creates money

When government money is destroyed what do people use? It seems that in Zimbabwe people are returning to one of the oldest and most incorruptible forms of money. Not as part of some grand plan but rather as a spontaneous reaction to real need.  

I feel somewhat conflicted by this footage. On the one hand the phenomena of market created money is inspiring. On the other hand the human situation in a delinquent nation is truly tragic.

5 thoughts on “The market creates money

  1. Terje,

    I can’t see how the productive members of society spending their time digging up a metal which will sit in a bank vault somewhere can be considered “inspiring”.

    The overheads of a gold backed currency are huge.

  2. JohnZ,

    The digging of gold for profit isn’t what is inspiring in the film. Poor people could and do dig gold for profit in countries with stable government issued currencies. What was inspiring was that people were using a ready alternative to government issued currency in the market place. Bakers and butchers who never dig gold are using it in trade. They had found their way back to a tradition that stretches to antiquity.

  3. I agree with Terje here Z. It is inspiring in the sense that people do their best in the face of complete adversity to figure out how to survive.

    However I do emphasize with your point. it would be much better to see one of these people telling he market they’ve built a better IPhone.

    The idea of utility is a human trait.

  4. The other thing to note was that the gold depicted in the story was not sitting in a vault somewhere. It was circulating in the market. I was being used and was providing utility. Nobody was forcing them to use gold. If there wasn’t a need for such a thing then people wouldn’t profit from spending their day in the mud.

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