Richard Branson, the billionaire that we all know has a strong fascist streak, also has an issue with thenon-problem known as "hoarding":
With all his billions, you'd think Branson could pick up a copy of Rothbard's "What Has Government Done To Our Money?". He could even get a digital copy for FREE if the $5 is just too much.
The bottom line in Branson's case? You can have billions of paper dollars (or electronic digits) and still not understand the economics of money.
With all his billions, you'd think Branson could pick up a copy of Rothbard's "What Has Government Done To Our Money?". He could even get a digital copy for FREE if the $5 is just too much.
There's no reason for me to re-invent the wheel, so I'll let Rothbard take it from here:
The image is conjured up of the selfish old miser who, perhaps irrationally, perhaps from evil motives, hoards up gold unused in his cellar or treasure trove--thereby stopping the flow of circulation and trade, causing depressions and other problems. Is hoarding really a menace?
I love that Murray used gold as the monetary unit. What a beautiful touch!
In the first place, what has simply happened is an increased demand for money on the part of the miser. As a result, prices of goods fall, and the purchasing power of the gold-ounce rises. There has been no loss to society, which simply carries on with a lower active supply of more "powerful" gold ounces.
Even in the worst possible view of the matter, then, nothing has gone wrong, and monetary freedom creates no difficulties. But there is more to the problem than that. For it is by no means irrational for people to desire more or less money in their cash balances.Continue here to see how Murray put this non-problem to rest.
The bottom line in Branson's case? You can have billions of paper dollars (or electronic digits) and still not understand the economics of money.
via:http://www.economicpolicyjournal.com/2014/02/richard-branson-understands.html
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