Fixing The Incentives: How Fiat Money Broke The World
The world today is filled with an abundance of energy, resources and potential. But why is it that so many people are struggling to make ends meet while others seem to be getting richer by the day? It may be because of the way our economies are set up – in particular, how our system of money works.
At its core, our current system of money (called fiat currency) is broken. The incentives created by this system place a huge amount of pressure on those who work hard and do their best to provide for their families, while those in more privileged positions of power often receive rewards without having to put in the same amount of effort. It’s a system that doesn’t make sense and needs to be fixed.
How We Got Here
Fiat currency is the paper money we all use on a daily basis. It’s created by a central government and all transactions are conducted with it. Prior to the establishment of this system, money was backed by commodities such as gold, silver and other precious metals; each of which held a certain value. That value was guaranteed to the holder and could be exchanged for real goods and services.
However, the establishment of fiat currency moved us away from the tangible assets backing money and instead, made it a form of credit. In this system, money is created out of thin air, it’s a debt-based debt. The issue here lies in how much money can be created. There’s less incentive to save as the literal value of money continuously loses its worth. This has caused economic problems in many countries around the world.
What We Can Do About It
We need to start thinking about the incentives created by our current system. Here are a few possible solutions:
- Create digital currency that is based on a gold or other commodity-backed system. This would add a level of tangible value to each transaction made with this money.
- Introduce incentives for businesses and individuals to save instead of trying to make a quick buck. For example, low-interest rates for long-term savings or financial rewards for investing.
- Introduce a basic income for citizens to ensure everyone has a minimum standard of living. This would reduce the need for people to take risks and cut costs beyond their means to get by.
- Incentivize fair trade agreements with other countries to ensure we move away from exploitative practices.
- Give communities more control over where their money is invested. This would create stability and make sure it goes to where it’s most needed.
These are just some of the ways in which we can start to tackle the problem of our broken economic system. It’s time to stop putting money before people and start rewarding hard work and creativity. It’s time to fix the incentives.
Our system of money is in dire need of a major overhaul to account for the realities of our modern world. We need to start thinking about long-term solutions for fixing our broken system and ensure everyone has a fair chance to succeed. We need to make sure our money works for us, not against us.
Stop relying on the government to fix things, let’s all work together to make sure our economic system works for everyone. Let’s make sure it’s equitable, sustainable, and just plain awesome!
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