Say I buy a 2 dollar bottle of Coke from a grocery store. I go up to the cashier, I give them the money, they put it in the till, and I walk away. I have given money to the store, who presumably will then use that 2 dollars to fill out their employees paychecks, pay for things in the store like water, electricity, heating, janitorial staff for cleaning, etc, etc.
After all of that, how will Coke ever see my 2 dollars? It would seem to be that the money would have diluted beyond all recognition by that point.
In: Economics
Think of yourself as a farmer, you grew some tomatos and want to sell it for 10 cents a tomato but you also don’t want to have to deal with the hassle of setting up your own shop, hiring staff, etc so you sell it to a grocery store, that grocery store has payed you for your tomatos already and whether I go to buy it from the shop or not you have your money.
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