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Money vs population

  1. Mar 8, 2005 #1
    The population is increasing but the sum total of money remains the same. Is it inevitable that there will be more people than the limited amount of currency can supply for?
  2. jcsd
  3. Mar 8, 2005 #2


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    Staff Emeritus

    No. Look up inflation on google.
  4. Mar 8, 2005 #3
  5. Mar 8, 2005 #4


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    Staff: Mentor

    Clarification: evthis said if the total sum of money remains the same, so inflation wouldn't apply. But, as dduardo's statement would imply, that situation is not reality. The reality is that the total sum of money available is not constant (inflation is just one of several reasons).
  6. Mar 8, 2005 #5


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    Money is not a limited resource that has to be spread among people. It is meaningless to set a fixed amount of money and then discuss its distribution it as if it were oxygen.

    If everyone in the world is employed and is contributing to the economy, then we have a thriving world.

    Money is an effect, not a cause.
  7. Mar 8, 2005 #6
    "they say the best things in life are free... but you can save it for the birds and bees, i want money, ya thats what i want, i want money..."

    But i guess if you look at it like behind money is gold or whatever, and there's only so much gold, so if there's more people, won't there eventually be more people than gold.... Well ya, but then every little bit of gold would be super valuable and silver would be more valuable and so on... and eventually we'll find something that is about as valuable in that overpopulated world as gold, (or money, whatever) is today. eh?
  8. Mar 8, 2005 #7
    Read the link I posted above about fiat money. We're not on the gold standard anymore.
  9. Mar 8, 2005 #8


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    That's exactly why money is no longer backed by gold. It is simply backed by perceived worth at this point. Whatever a seller is willing to give you in exchange for one dollar is the worth of that dollar. As more people come into the world, more goods and services do as well. These are the only things that are truly worth anything in and of themselves, and there is no reason in principle why they cannot increase forever so long as we have the space and resources to accomodate the persons and their respective businesses. In practice, our resources and space are limited, and so we do run into an absolute barrier beyond which no further item of worth can be created, but we are not yet anywhere near that point.
  10. Mar 8, 2005 #9
    i know we're not on a gold standard, but really it doesn't matter. we designate worth to something ie gold, or money. And we just keep adjusting that worth based on how society grows. We can't ever run out of money because we can just adjust how much that money is worth. i agree with dduardo and DaveC426913. i just thought the gold standard was easier to understand.. meh
  11. Mar 8, 2005 #10

    Given that modern currencies are not tied to gold, thats entirely irrelevant.

    Money is not a zero sum quantity.

    If a bill changes hands and is spent 3 times, its as if 3 different bills had been spent.
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