From an Austrian economics perspective
I came across this interesting post on reddit, enjoy: We have a farmer, a carpenter, a tailor, and a lumberjack. Each year, each person produces 40 units of production. The money supply is fixed at $100. Each person has $25 stuffed under the mattress. Twice a year, one worker will pay $5 to another worker for 5 units of the other workers production. In other words, each person has a yearly demand for 10 unites of clothes, food, furniture, and lumber at current prices. Each person owns a house, which , if sold on the open market, would command a price of $10. |
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