Why we expand the money supply

  There is something very unfair about how a few select men control the nation's money supply. But we will ignore that for the moment. The reason you need to increase the money supply is because the recruitment of labor and the construction of new projects requires financing. And the speed by which we are able to recruit and produce depends on the capital available. If cowry shells was the means to finance labor and production then we have no trouble expanding the economy.

If its gold, then it is near impossible since gold production is both tedious and slow.We could not deploy new labor, we could not deploy new technology, because there is not the gold available to pay for it.









If its paper, then we have no limitation to how much labor we can recruit.The only limitation then is not financing, but whether there are still unemployed people available to recruit.

  Now back to the question of fairness. Leaving the nation's financial levers to a few select men leaves quite a bit of room for corruption and misappropriation. These men then decide who we are recruiting, and what we are recruiting them for. They also decide what technology to pursue, and what technology to deploy. Their decisions might be good for public interests.

There decisions might only be good for their own personal interests.
And that is something that is very difficult to monitor.