Why can't our dollar be backed by what we produce???

Originally posted by sonofliberty1776
reply to post by Rockpuck

 

I am sorry to inform you that the federal reserve note we currently use is based on NOTHING except the "full faith and credit" of the US government. It has zero intrinsic value.

Hi.

That's exactly what I said.

I think all this time US dollar based on faith and believe the us economy and power. Comparison between all US$ in the world with US gross domestic product never balance but the trust all this time made it, even get stronger.
Problem is when some countries start not believe in US$ and start rechange it or buy commodity in US with it, sooner demand on us$ will decrease in that area and will spread fast enough, and in the end, large amount of US dollar will be back to US.

If this happen, comparison between all dollar circulate in US and gross domestic product will be far. Since real value will along with the amount of money circulated divided by gross domestic product, dollar value will get low fast enough and commodity price will rise sharply. To solve this, i think either to boost the growth of GDP or to cut nominal value of the money.

Just my silly opinion

Originally posted by The_Phantom
Yes, I agree that is the way things are done now, I'm talking about about a restructuring of the entire system including how we define what types of work are "worth more" then others. Why isn't a teachers job "worth" as much as a another? Ditch digging is hard work, why shouldn't it be worth as much as any other job? Yes, you will explain that a programmer goes to college to learn their skills and they have to pay for that, so they should benefit more. I agree in the system we live in now all of your arguments will make perfect sense and I do not challenge them. I only ask if it's possible that another system based on working as a means to gain in life could be built, one that has not been tried, one that encouraged gaining capital but satisfied everyone by keeping the playing field "fair" I'm not promoting the idea, I simply thought of it and wondered on a intellectual basis if such a system could possibly be built.

edit on 25-6-2011 by The_Phantom because: (no reason given)

No. Anything that requires brain power will cost more. Ditch diggers can be easily replaced. You can't do the same with neuro surgeons or engineers. Law of supply and demand.

reply to post by lspilot6946


You would have to increase production in america. But that wont happen due to the greedy corporatists who outsource everything to poorer countries for cheap/slave labor which is why america doesnt produce anything anymore.

they would rather pay someone .50 cents an hour in an underdeveloped country, as opposed to paying someone 8.00 an hour in their own country..