There are some things government leaves to the free market and some things it reserves for itself. One of the functions the government decided to keep for itself is issuing currency. Truthfully, the government keeping control of our currency is not all bad. There was a time when different entities in this country issued a variety of currencies. It was economic chaos. The federal government stepping in to issue a central medium of exchange solved a lot of problems for a growing nation at the time. Today we’re in a situation where government has kind of bungled the currency thing. Not just the U.S. government, most of them, actually. The tragic part is the free market is just itching for a chance to help and there’s no reason government and private industry can’t cooperate for the benefit of both.
Archive for the ‘Money Theory’ Category