May 6 2012: I think where we differ in economic reasoning is our definition of money itself. I define it as anything that performs three tasks: acts as a medium of exchange, a store of value, and a unit of account. While confidence is required to perform these three tasks directly, it isn't the real necessity of money.
But the issue of inflation with fiat currencies brings the worry of deflation in backed currencies. Population growth alone is skyrocketing in recent centuries- we don't have enough new precious metals to make enough new money to keep the money supply per capita constant, let alone have the slow growth of the money supply per capita that often brings economic growth. The solution I see in this backed but growing world is to shift to less valuable, more available metals, but as that becomes the trend, the currency effectively approaches a fiat currency- people don't put the value of the metal in it, they define value based on the government backing it.
Furthermore, in terms of rapid expansionist policies, there are ways to cut inflation quickly. They're often painful for the economy, but are possible. Which gets to the heart of the beauty of a fiat currency- it allows governments to use monetary policy to exploit relationships like the Phillips Relationship to better grow an economy in the medium run.
May 6 2012: That's an interesting idea, I'm just not sure how it could be created. First, any supernational agency that was tasked with determining all of these categories would have such a huge influence of world trade, I'm not sure that would be much better. Second, I'm not sure we can really agree on those signifiers- what economists value as indicators differs between schools of thought and changes over time (one of the best examples is the shift from GNP to GDP). Third, I don't know how it would actually solve for the issue like those who defend metal backed currencies deem necessary. The nice part of having a nation's currency backed by gold is that, if nothing else, you can turn one amount of that currency into some amount of gold- a commodity that can then be taken anywhere in the world and maintains some value. I'm just not sure how one could actually convert this "advancement backed" currency you propose.
Thank you for taking the time to respond! There are definitely a lot of ideas here that are a great first step- but to try to keep the conversation going, I'll do my best to reply to each set of arguments directly. I don't want to seem aggressive, I just feel it's that next step that I have the hardest time seeing
May 4 2012: Wait, was it actually suggested that sugar is as poisonous as alcohol? I'm sorry, but this just isn't true. Correct, eating excessive amounts of sugar over decades of one's life can lead to increased risk of a variety of diseases. So can salt, or almost any vitamin the body needs to survive.
However, there are a few important distinctions. First- sugar does serve a recognizable, useful purpose for humans: it provides quick access to energy.
Second, especially as it relates to alcohol and other drugs, the effective dose/lethal dose of sugar is tiny compared to other substances.
May 4 2012: Here's the thing (in my opinion.) Yes, I agree with ideas like those of Barak- that there are some areas where patents should not extend (individual genes, for example). However, that being said, I think to make a blanket statement like "patents are bad" is incorrect. If your hypothesis, that patent law is destroying creativity in the world, was true, I'd ask for the evidence. However, as patent law has increased in scope and strength across the globe, so too has scientific understanding and technological advancement.
May 4 2012: Robert, with all due respect, what are you talking about in your opening paragraph? Emperor Constantine I of Rome called the Council of Macaea- he wasn't the emperor of Greece. Furthermore, he wasn't Muslim. He had converted to Christianity in 312, and had issued the fairly revolutionary (in the Roman world, anyway) edict of Milan in 313, granting significant religious freedoms to citizens.
Beyond that, he didn't define a moral code for all the Earth, just for the Roman Empire. And while that was the major western power at the time, to suggest he unified all the Earth's moral code would anger some North Europeans, Chinese, Africans, etc.
May 4 2012: Sorry, but astronomy is definitely not the "mother of all natural sciences." Often times, whats used inside the academic world is the "purity scale" of sciences. Roughly speaking, from "less pure" to "more pure" the ordering is:
History, Sociology, Anthropology, Biology, Chemistry, Physics, Mathematics (Although there is some debate)
Now, the "purer" sciences aren't necessarily better, they just indicate a more rudimentary foundation. Physics is ultimately applied mathematics. Chemistry is applied physics. Etc. Without a doubt, the study of mathematics is the "mother" of all else
May 4 2012: I think the idea behind increasing teacher salaries isn't about an individual teacher's ability. Although you could argue that if a teacher's pay was huge, he or she would work incredibly hard to keep the job- put more time into lesson planning, etc. I think the idea more revolves around the fact that if salaries increase, there is more interest in the industry. If teachers are getting paid $50,000 a year, there will be some people interested in teaching. On the other hand, if the salary jumped to $500,000 (for the sake of argument) far more people would be interested in the job. If this were the case, schools could then be more selective about who they hire, and theoretically increase teacher quality
May 4 2010: What most people don't realize is that Apple actually isn't a very successful computer company. While they are the largest maker of phones (not because of their 'fundamental message' but because of the iPhone's simplicity and features) Apple only has roughly 8-13% of the personal computer market share. The vast majority of people buy computers with a Windows operating system from Dell or HP.
Also, if you do your research you realize that Langley didn't just "give up" as Sinek suggests. Actually he continued his research until 1912.
Feb 2 2010: My biggest problem with this idea is the lack of economic knowledge employed by the presenter and most comments. Getting rid of a central currency is terrible! It took thousands of years to develop one, reverting back to bartering is stupid, as bartering (unlike monetary transactions) require a direct coincidence of wants (if you grow corn and I make books, and I want some corn, I better hope you want a book). However with money, trading can be facilitated, as any group will accept the common currency. Similarly, town independence is NOT GOOD!! Trade is a good thing for people to do, it allows for specialization and therefore maximization of products. That's why we trade. Take his logic to it's inevitable conclusion. If town economies are better than national economies, then familial economies must be even better. And individual economies, then, must be the best. That's not right! That stops all specialization of labor and thereby decreases the standard of living for everyone!
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A reply on Conversation: Can anyone here defend the use of metal backed currency in this day and age?
But the issue of inflation with fiat currencies brings the worry of deflation in backed currencies. Population growth alone is skyrocketing in recent centuries- we don't have enough new precious metals to make enough new money to keep the money supply per capita constant, let alone have the slow growth of the money supply per capita that often brings economic growth. The solution I see in this backed but growing world is to shift to less valuable, more available metals, but as that becomes the trend, the currency effectively approaches a fiat currency- people don't put the value of the metal in it, they define value based on the government backing it.
Furthermore, in terms of rapid expansionist policies, there are ways to cut inflation quickly. They're often painful for the economy, but are possible. Which gets to the heart of the beauty of a fiat currency- it allows governments to use monetary policy to exploit relationships like the Phillips Relationship to better grow an economy in the medium run.
A reply on Conversation: Can anyone here defend the use of metal backed currency in this day and age?
But a very interesting and unique solution!
A comment on Conversation: Can anyone here defend the use of metal backed currency in this day and age?
Thank you for taking the time to respond! There are definitely a lot of ideas here that are a great first step- but to try to keep the conversation going, I'll do my best to reply to each set of arguments directly. I don't want to seem aggressive, I just feel it's that next step that I have the hardest time seeing
A comment on Conversation: Is Fructose (table sugar as well) poisonous?
However, there are a few important distinctions. First- sugar does serve a recognizable, useful purpose for humans: it provides quick access to energy.
Second, especially as it relates to alcohol and other drugs, the effective dose/lethal dose of sugar is tiny compared to other substances.
A comment on Conversation: Are patents and copyrights killing any possibility of us surviving ourselves?
A reply on Conversation: Can we unify our moral code?
Beyond that, he didn't define a moral code for all the Earth, just for the Roman Empire. And while that was the major western power at the time, to suggest he unified all the Earth's moral code would anger some North Europeans, Chinese, Africans, etc.
A comment on Conversation: Is Astronomy the mother of all natural sciences?
History, Sociology, Anthropology, Biology, Chemistry, Physics, Mathematics (Although there is some debate)
Now, the "purer" sciences aren't necessarily better, they just indicate a more rudimentary foundation. Physics is ultimately applied mathematics. Chemistry is applied physics. Etc. Without a doubt, the study of mathematics is the "mother" of all else
A comment on Conversation: An increasing number of teachers get much more payment than before,but why?
A reply on Talk: Simon Sinek: How great leaders inspire action
Also, if you do your research you realize that Langley didn't just "give up" as Sinek suggests. Actually he continued his research until 1912.
A comment on Talk: Rob Hopkins: Transition to a world without oil