Government is the only institution that can take a perfectly good piece of paper, print some noble words on it, and make it perfectly worthless.
About this quote
- What does it mean?
- Government currency is criticized for having value only because of state authority.
- In plain terms
- Paper money is worthless unless the government says it is valuable.
- What can you take from it?
- Fiat currency relies on state trust rather than intrinsic worth.
Where it applies
Putting it to work
Questions to consider
- What gives money value?
- Can paper money ever have intrinsic worth?
Another view
This view ignores the stability and utility that fiat currency provides.
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