Money and the rich

[ALine]

Ok so if there is a set amount of money inside of a community and there are people who store currency instead of spending it then wouldn't more money need to be printed in order to allow everyone to be able to have money. Thus causing the general value of the money as a whole to decrease. And if this is true then wouldn't that mean that all currencies connected to that communities currency would be directly affected by the value of the communities money as well?

Probably wrong about this

[Ten oz]

Money value does decrease overtime, inflation. A single U.S. dollar in 1960 would be worth over $8 today. 

This link calculates inflation by year. http://www.in2013dollars.com/1960-dollars-in-2016?amount=1

 

[OldChemE]

Don't confuse money with currency.  Sounds silly-- but to give you an example, my income and expenses balance out at around $5000 per month-- but I only take about $40 per week of that in actual currency (cash).  The rest is all electronic deposits and debits-- no cash ever changes hands.  Thus, the supply of currency does not have to match the amount of money present in a community.

[Brett Nortj]

On 28/07/2018 at 7:20 PM, ALine said:

Ok so if there is a set amount of money inside of a community and there are people who store currency instead of spending it then wouldn't more money need to be printed in order to allow everyone to be able to have money. Thus causing the general value of the money as a whole to decrease. And if this is true then wouldn't that mean that all currencies connected to that communities currency would be directly affected by the value of the communities money as well?

Probably wrong about this

You have the right idea, but the money stored is just bits and bytes in a computer. There is no shortage of real cash, although if the money is 'hoarded,' then it will create a shortage which means the money will be worth more, with the supply and demand ideals, of course.

If you were to keep money out of circulation, then there needs to be more made, yes? The thing is, the system will always lend from the bank, where the money is stored, and, that means that the money will grow, which means that there will be more money with less in circulation, creating a shortage! This is where there is more with a shortage, great for the economy, of course, if handled correctly.

Money decreases in value based on currency trading, where the exchange rates between entities changes. This is the only time money gets worth more or less, and, this could be nucleated or inside the country or city too.