Critque- Why does money have no value?

Why does money have value?

Benjamin Holler

I agree with the author of this article and in the blog, money really has no value. This has been true since the 1971 when Nixon got rid of the gold and silver standard. Before money was backed by something to help keep the economy stable, but now there is nothing, it could be looked at as worthless if we all got together and got rid of the demand. As I am a history major I saw this same thing during the Weimar Republic in Germany just before World War II. As we learned in class at this point in Germany history there was hyper-inflation which made money worthless and people tried to get rid of it as fast as possible. The Weimar Republic tried everything to get the money to hold to something, even creating a whole new currency.. Almost everything failed until the republic but land value behind the money. This in the sense is the same thing as the gold standard but with a section of land. This for the people of the country gave them faith in the money, even though the government lied about the value. The government in Germany would never sell the land but no one questioned it. This barely helped the economic situation in Germany and only until the Weimar Republic fell and the preparations of war came did the country get out of the trouble. If we all decided as citizens of the United States to not accept the dollar and do not demand at all, we will see money disappear because there is no backing to make the dollar worth anything. The article and the author of the blogs goes into saying inflation is related to the response of the people to the money. The people do not believe in the money and spend it right away, and then business will change prices several times a day to keep a profit. This is almost like a snowball effect, which can be devastating for everyone. This issue is still in today’s decision in the United States. Senator Ron Paul sought to change the law in 1971 for Americans to go back onto the gold standard. He even ran for president behind this fact. In all I believe the author of the article and the blog have valid points that everyone should be aware of, we as a people need to see this problem that could arise before something happens.