The Interesting Thing About Money


It can’t be wasted, only misallocated, which is a matter of opinion. If you spend your money, you create a ripple effect known as the Keynesian multiplier where the people you give your money to also spend it, about five times in a year ; good for creating commerce and employing people.  If you save your money it becomes available to you and for other people to buy expensive things (homes, cars, etc) that they can’t afford to buy outright.  This process also employs many bankers and financiers and creates employment in the factories and in the supply chain.  If you invest your money, you enable the creation or expansion of businesses also leading to employment.  Even if you burn or bury your money, or just stuff it in the mattress it’s not wasted as you slightly increase the value of all the other money in circulation.So you really can’t make a societal mistake with your money, only a personal one.  And  case you have enough put by, you can afford some mistakes.

Remember this whenever someone tells you you you ought to do this or that with your money.


About Keerthika Singaravel

2 Responses to The Interesting Thing About Money

  1. Shradha says:

    Very interesting thoughts.

    • Glad you found them so.

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