Over the years I have written about accounting, finance, revenue, expense, and government. A common theme in every article has been at least one thing: money. What is money? Is it worth the money? I think we can say that it is something that is a store of value. It can serve as unit of account. It provides a common base for prices. It is a medium of exchange. Without a doubt, it is easier to go to a store and spend $10 for something than it would be if we had to look around the house for something we thought was worth $10, to then go find someone who has that $10 thing we want and convince them they should trade with us evenly, my thing for their thing.
What is money worth? I don’t know. Is the $10 bill with more than the paper it is written on? I have heard that the amount of copper used to make a penny costs more than a penny. I’m not so sure about the $10 bill. I do have a general idea of what $10 is worth. If I see something that I think should cost $10 and it costs more, there is a good chance I won’t buy it. Now if it is less than $10, I found a bargain. I appreciate that we all agree to work together this way.
On another note, a magician is said to be one who performs tricks of illusion and sleight of hand. A common method used is to distract the audience. We all look at the movement of a shiny object in one hand while the other hand is doing the work. We don’t see what the working hand has done until it is finished. Then the hand that distracted us points at the result of the work done and it appears to have been done by magic. Fun.
Getting back to the topic of money, it is worth noting that the national debt amount continues to move up. While we were listening to the news about someone impeaching someone else, the US national debt grew to be over $23 trillion. That’s over $70,000 per each citizen. In addition, The House of Representatives recently passed a $1.4 trillion spending pact. Which hand was the distraction and which hand was doing the work? This certainly feels like magic to me. I was listening the impeachment speeches and suddenly the money was gone. I must pause and look at the back of a Federal Reserve Note I have in my pocket. There it is, “In God We Trust.”