Why isn't our economy based on energy rather than gold?

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18 Aug 2011, 8:39 pm

I'm not an economics specialist, but it just appeared more logical to me to use energy rather than gold as a currency...

Blasty
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18 Aug 2011, 11:35 pm

We're not on any metals standard any more, hence the government's ability to print dollars into oblivion.

Backing our currency with anything would be an improvement.

sterfry
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18 Aug 2011, 11:50 pm

I believe we use the fiat system which means our money is backed by Italian cars.

johnsmcjohn
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19 Aug 2011, 12:23 am

Our economy isn't based on anything besides people's faith in it. That nice green dollar in your wallet? Totally worthless by itself. The only reason our money has any value at all is because people are willing to accept it in exchange for stuff.

SammichEater
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19 Aug 2011, 1:35 am

It's not a bad idea.

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Artros
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19 Aug 2011, 2:14 am

johnsmcjohn wrote:

This.

Gold is nice because gold always has value because people like shiny stuff. Energy's value changes from situation to situation. It's also pretty difficult to pay someone in energy. You can't expect people to carry around batteries in their pockets.

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sErgEantaEgis
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19 Aug 2011, 2:59 am

Artros wrote:

johnsmcjohn wrote:

When I was talking about energy I referred to the ability to do work. Energy is universal. Evety nation, every person can do something productive, but not every country has access to gold. Beside the universe itself use energy to wodrk!

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19 Aug 2011, 3:19 am

sErgEantaEgis wrote:

Artros wrote:

johnsmcjohn wrote:

So...a barter system?

Ancalagon
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19 Aug 2011, 8:16 am

SammichEater wrote:

It's not a bad idea.

Actually, it is a bad idea.

Would you like to pay for your groceries with a gallon of gasoline? A car battery? A sackful of AAs?

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MasterJedi
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19 Aug 2011, 8:35 am

oil, hullo???

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19 Aug 2011, 8:44 am

1. Because Gold is rare. Our sun apparently has something about it which makes it possible in our solar system. It will never be worth nothing.
2. Because energy is free. You can't claim dibs on the likes of the sun, water and wind. Hell, you can even create it pedalling a bike.

Also the economy is fluid does it physically exist? Not really. Maybe some of it is influenced by gold but not a lot.

Good idea? Logical? Not really thought out.

Last edited by hale_bopp on 19 Aug 2011, 8:50 am, edited 2 times in total.

Moog
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19 Aug 2011, 8:47 am

Artros wrote:

johnsmcjohn wrote:

Work is effectively paying someone in energy. Typically, you are paying for money with your energy. Which you can then exchange for goods and services.

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19 Aug 2011, 8:53 am

sterfry wrote:

I believe we use the fiat system which means our money is backed by Italian cars.

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swbluto
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19 Aug 2011, 10:29 am

Artros wrote:

Gold is nice because gold always has value because people like shiny stuff.

Establishing value for "liking shiny stuff" is like drawing lines in the sand.

URtheALIEN
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19 Aug 2011, 10:38 am

swbluto wrote:

Artros wrote:

Gold is nice because gold always has value because people like shiny stuff.

Establishing value for "liking shiny stuff" is like drawing lines in the sand.

Perhaps true but it worked fairly well for most of the world for thousands of years. The current Fiat (car based) system is broken. Gold, oil, and potatoes whatever something needs to be selected and I think there are several contenders.

Gold or another precious metal works because of scarcity, and can't be "consumed".
Oil is not a good commodity, its value is in its use, once used it is no longer available for use as currency.
Work will not work in of itself because not all work is equivalent and that is obvious. An hour digging a ditch gets you a ditch, an hour studying gets you (maybe) a little knowledge and an hour voting in congress can get you a war, billions of dollars redirected or a president impeached.

Any suggestions other than a metal or other limited resource?

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Ancalagon
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19 Aug 2011, 11:52 am

Money is just a number. It isn't tied to any one commodity. It doesn't need to be.

The only property money needs is to be believed to be valuable by people. If people think it's worth something, then it is.

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