An Evaluation of Money with No Intrinsic Value in Naked Economics

An Evaluation of Money with No Intrinsic Value in Naked Economics Money, at least in the modern sense, has no intrinsic value. Because it does not need to. It is for people to have an ease in transaction. Money needs to be easily stored, commonly accepted, and store some value dictated by its users. This seems perfect—the dollar can be stored in your wallet, or online, and everyone in the United States has to accept it. However, fiat money can be manipulated by governments both for malevolent—in the case of North Korea cutting the money supply to control black market businesses, all while making North Koreans poorer—and for benevolent purposes—the United States Federal Reserve creating more money out of scratch to help with the economic recovery following the 2008 Great Recession. Because the money is not backed by materials with intrinsic value, the government can manipulate the value of money. However, fiat money is worse than money with intrinsic value—the mackerel pouches in prisons, money backed by gold, or g old itself—because it can increase in supply as the economy grows. If money were limited to materials with intrinsic values, the economy would not be able to grow easily—it is a lot harder to find five percent more gold in the world than it is to create five percent more fiat money when the economy grows by five percent. Money without intrinsic value also only has to be commonly accepted, as in the case of the Somalian shilling, in order to function as money. People need money because people need a way to keep track of their wealth, easily store their wealth for future purposes, and to exchange their wealth easily for other goods and services. Fiat money fulfills those requirements—it is easy to assign a value to, it is easily stored in paper, bank accounts, or even bits and bytes among other methods, and can be exchanged as easily as a click of a button. And its supply can always be increased when the economy grows.

Research Essay Example | Topics and Well Written Essays - 500 words - 20

Research - Essay Example To this end, the United States has adopted a global mindset in its relation with other countries. The distinct features of a global mindset involve showing understanding, care and concern for the global citizens. Evidently, the United States exhibits this attribute by advocating for human rights doctrines among the countries citizenry, as well as free and fair democratic systems in governance. Another key communication style employed by the United States with other countries is a diplomatic process that respects the democratic systems. To this end, the United States does not interfere in the free and fair democratic processes of countries such as elections, or administration. However, it is critical to note that the United States only recognizes democratic governments that uphold the human rights of citizenry, and have achieved a consensus mandate from the general populace. Cooperation and collaboration is another communication strategy employed by the United States (Prewitt, Weil, & McClure, 2011). Evidently, effective leadership employs collaboration rather than competition. This is in recognition that competition fosters suspicion, jealousy and mistrust that can eventually lead to breakdown of relations. To this end, the United States fosters mutual cooperation with other countries in critical areas such as the trade, industry, environment and security. In the same respect of collaboration and cooperation, the United States fosters mutual partnership with democratic governments. Effective global leadership equally needs to be appreciative of the multiethnic, multiracial, multi cultural and diverse religions of the Earth. To this end, the United States employs a communication style that is empathetic and culturally sensitive. This involves the mutual respect and impartiality towards the multicultural communities. Moreover, the United States employs empathy to the global citizens in terms of crisis such as droughts, environmental

Individual Strategic Management Essay Example | Topics and Well Written Essays - 1250 words

Individual Strategic Management - Essay Example The last part of the paper looks at one solid strategic management recommendation for the company. â€Å"Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store and it also offers iPhones and iPads† (Blodget, 2013). Its mission statement is: â€Å"We want to leave the world better than we found it.† The company is comprised of a variety of stakeholders and these are individuals or groups of people who have a stake in the operations of the company. The employees, suppliers, distributers as well as management of the company are the stakeholders who directly control its operations. The shareholders and consumers are also major stakeholders of the company since these contribute towards the revenue it generates from its operations. Ordinary people in the environment in which the company operates are also stakeholders since they are affected by its operations. The government and other regulatory bodies are also stakeholders for this organization. The external environment of the company can be analysed through the use of Porter’s five forces model which comprises of the following factors: barriers to entry by competitors, threat of substitute, bargaining powers of buyers, bargaining powers of suppliers and rivalry among the existing players (http://www.12manage.com/methods_porter_five_forces.html). The mobile communication technology industry is capital intensive hence it may not be that easy for other new entrants to penetrate the market. This means that barriers to entry are high which cushions Apple in its operations. This mainly depends on the buyers’ ability to influence the price. Apple products have premium prices which mean that the customers have little influence to change them. The products offered by Apple are specifically meant for the rich and affluent people. The bargaining powers of suppliers