OK, My economics sucks! I still don't understand why and how.
How can the overall money of the world increase?
I thought whenever someone become richer, there is always someone become poorer. Isn't it the case? So if the money of the world increase, isn't that mean potentially everyone can get richer? So if everyone dig out some gold from their garden, would everyone become richer? That sounds non sense to me.
Can someone explain to me how does this works? How can the whole world become poorer or become richer at one point? Where does the money go when the world become poorer? Where does the extra money come from when the world become richer? I don't understand a holistic view of the increase of world money.
Man, economics, so hard!
I'm not good in economics either....
ReplyDeletebut I guess it could explain in that -->
ie.
An apple in the past was 1 NZD each and you could purchased 10 of them from 10 NZD.
However, if the money of the world increase, everything at the market would increase-->the new price for each apple now is 2 NZD.
Therefore, you need to spend double of your money to purchase an apple...
you can only purchase 5 only from your old 10 NZD
If this apply to everything, ie.. all the food, petrol, etc. It would affect a lot to us and so your money has devalued.
"the money of the world increase is going to make everyone become poorer!!"