Before the gold standard was dropped, it was relatively easy to understand where money got its value.
Money represented a certain proportion of gold in a country’s National Reserve. The money could be cashed in for gold, a very physical and tangible item. That all makes sense.
But we don’t use that anymore. So isn’t the money just paper? I don’t see how this system makes sense anymore.
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You’ll get some good answers, but try this thought on for size. When money was tied to a quantity of gold, what gave gold its value? What did gold do that was valuable? Why?
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