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Money Money
by Joseph Gatt
2020-12-29 10:13:58
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Let's imagine a closed house. Mommy gets paid to cook. Mommy employs daughter 1 who helps her cook and pays daughter 1 wages. Daddy owns the bank and insurance services, his wife and kids pay him money in case disaster strikes, and leave their money in his bank in their private accounts. Daughter 2 and son 1 own a farm in the backyard where they grow fruits, vegetables, herd cattle, produce milk. Daughter 3 makes bread and oil. Son 2 is the engineer who makes sure there's electricity, gas and water in the house. Son 3 makes hygiene products like shampoo and soap and detergent and clothes. Son 4 and daughter 4 are the “media” and they keep the family informed on what goes on inside and outside and entertain them.

Year 1: Daddy decides there's a fixed amount of cash coins in the house. It's 10,000 coins, not one more, not one less.

mone0001_400Mommy and the kids are fighting over who gets to keep the most coins. Mommy sells expensive breakfast, lunch and dinner, and the quality is not great. Kids sell expensive fruits and vegetables and meat and bread and hygiene products and the quality is not great. Everyone's trying to hoard cash.  

Year 2: Disaster stakes. There's a drought, the harvest is terrible. Meals are mostly meat. Daddy and his bank are broke. Daddy decides to print more coins to revive the house's economy.

Mommy and the kids use the new coins to rebuild what they lost. Neighbors donate food, and that's what the family survive on.

Year 3: Excellent harvest. Oversupply of coins. Media decides to promote avocados, kale, pomegranates as “healthy food” and sell them at an expensive price. Mommy brands her kitchen as a “luxury” kitchen and charges more money.

Year 4: Media starts being harsh with the family. Media criticizes the quality of the family's farm products, the quality of the engineer, and the quality of life.

Son 4 and Daughter 4 decide to set up a “university” where everyone will get training to get better at their job. Son 4 and Daughter 4 teach their brothers how to farm, how to engineer, teach their mother how to cook, and their father how to bank.

Year 5: Because the family culture is now a culture of “education” father decides to issue “education loans” with coins he prints. He assumes that his family will eventually pay him back.

Year 6: Now daddy invents this thing he calls “credit cards” and basically allows his wife and kids to buy anything they want, anytime, without thinking twice.

Kids binge on meat, avocados, eat way more food than they should. Kids also pay Son 4 and Daughter 4 crazy amounts of money to entertain them. Kids keep purchasing clothes to no end. Kids don't care how much electricity they're using.

Year 7: Now there are way too many coins and not enough products, or too many products and not enough consumers. Making a buck is tough business. Kids realize they are never going to be able to pay back their loans.

Kids do away with detergent and soap, do away with clothes, and eat what they buy from the farm kids and try to cook it themselves. Everyone needs lots of coins, but no one has those coins.

Year 8: Daddy bails out the family. Everyone's debt is forgiven, in exchange for structural changes. No more loans, and back to the basics. Coins are counted. There are 10,000 coins that circulate.

Individual family members try to hoard coins again, charge more money for lower quality products, and even more coins if you want “luxury” products.

THIS HAS BEEN THE ECONOMIC BOOM AND BUST CYCLE OF THE LAST 350 YEARS.


    
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