Will it benefit governments,banks,people etc ?
In: Economics
USA at least, it won’t burn easily. It’s made of cotton, not paper derivatives. You can literally hold a lighter under it and it will only char or darken but not flame up.
It in theory, benefits anyone holding cash. You have increased the scarcity of the bills, and thus raised its price relative to anything that hasn’t changed.
In reality though, the amount of money you’d need to burn to have any meaningful affect on supply would be more cash than any one person even has, so if you burned your savings, all you’re doing is screwing yourself over.
It benefits no one, yet gives insignificant disadvantages. That is unless you burn a lot of money (like a lot, not inly your money but other’s too), that would give one note higher purchasing power. It’s reverse of inflation
There’s nothing particularly special about burning as opposed to any other way of permanently removing physical money from circulation. The simplest (at least for bills) is probably to shred it.
What affect it would have on governments, banks, people etc really depends on how much money you’re planning on destroying.
Even if it’s a few dollars that could have a serious effect on someone, as if they only have $50 and you destroy $45 of them they’re obviously in a much worse place than before you intervened.
If you want to destroy enough money to have any noticeable effects on banks you’re probably going to need to destroy tens of millions, and to affect governments you’re looking at tens or even hundreds of billions.
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