The main root of USD value? Taxation

[JP Hochbaum]

Not man people know what give the USD its value. Some say faith and trust. But that seems rather flimsy, as we keep printing more and more and it seems to not effect our faith and trust. Perhaps maybe it is the threat of jail?

"Few people, in my experience, consider taxes to be the grounding for the dollar’s value. Most people just don’t think about it. However, Paul Solman, the master of the bits on this page, touched on the idea last year in an interview with Boston University finance professor Zvi Bodie.

Adam Smith, the father of economics, had the same idea in 1776. He wrote in “The Wealth of Nations”:

A prince, who should enact that a certain proportion of his taxes should be paid in a paper money of a certain kind, might thereby give a certain value to this paper money, even though the term of its final discharge and redemption should depend altogether upon the will of the prince."

The good you do for the dollar when you pay your taxes | Making Sen$e | PBS NewsHour

 

[joG]

Not man people know what give the USD its value. Some say faith and trust. But that seems rather flimsy, as we keep printing more and more and it seems to not effect our faith and trust. Perhaps maybe it is the threat of jail?

"Few people, in my experience, consider taxes to be the grounding for the dollar’s value. Most people just don’t think about it. However, Paul Solman, the master of the bits on this page, touched on the idea last year in an interview with Boston University finance professor Zvi Bodie.

Adam Smith, the father of economics, had the same idea in 1776. He wrote in “The Wealth of Nations”:

A prince, who should enact that a certain proportion of his taxes should be paid in a paper money of a certain kind, might thereby give a certain value to this paper money, even though the term of its final discharge and redemption should depend altogether upon the will of the prince."

The good you do for the dollar when you pay your taxes | Making Sen$e | PBS NewsHour

Sure, the value of a currency unite depends on among other things the number of unites in circulation. You factor that in, when you estimate future inflation.

 

[imagep]

Not man people know what give the USD its value. Some say faith and trust. But that seems rather flimsy, as we keep printing more and more and it seems to not effect our faith and trust. Perhaps maybe it is the threat of jail?

"Few people, in my experience, consider taxes to be the grounding for the dollar’s value. Most people just don’t think about it. However, Paul Solman, the master of the bits on this page, touched on the idea last year in an interview with Boston University finance professor Zvi Bodie.

Adam Smith, the father of economics, had the same idea in 1776. He wrote in “The Wealth of Nations”:

A prince, who should enact that a certain proportion of his taxes should be paid in a paper money of a certain kind, might thereby give a certain value to this paper money, even though the term of its final discharge and redemption should depend altogether upon the will of the prince."

The good you do for the dollar when you pay your taxes | Making Sen$e | PBS NewsHour

You remember that discussion we had a good while ago, where you said that we no longer need taxes as a revenue source, but that there were other needs for taxes (mostly social)? So is this another need for taxation that should be added to the list?

 

[JP Hochbaum]

You remember that discussion we had a good while ago, where you said that we no longer need taxes as a revenue source, but that there were other needs for taxes (mostly social)? So is this another need for taxation that should be added to the list?

Yes, I actually meant to post this in the Econ section but accidentally posted it here, lol