Money is infinite

How money is created and its relationship to wealth. Some economic theories and perspectives suggest money can be created without limit by a government that controls its own currency, this creation is not the same as the creation of wealth. Wealth is created through productive activity and value creation, like turning wood into a spoon, whereas currency is just a medium of exchange, not the value itself.

Arguments for the “infinite money” concept

Government money creation: Modern Monetary Theory (MMT) suggests that a sovereign government with its own currency can never run out of its own money because it can always create more to pay its debts.
Banks creating money: Banks can create money through mechanisms like issuing loans, and central banks create money by issuing reserve deposits.
Wealth creation vs. money creation: One argument is that while the amount of physical currency might be finite, true wealth creation is infinite because value can be continuously added through production, making money an infinite resource in that sense.

Counterarguments and practical limitations

Finite currency supply: The total supply of physical currency and coins in circulation is not infinite, although it is a large amount, according to a quote by Dave Ramsey.
Impact of money creation: The unlimited creation of money without a corresponding increase in real wealth can lead to inflation, which devalues the currency.
Money supply vs. wealth: The amount of currency in circulation (money supply) is not the same as the total wealth of a nation. Wealth is the total value of assets and productive capacity, while currency is simply the tool used to exchange that wealth.
Real-world constraints: The “infinite money” idea is more of a theoretical concept. In reality, creating money is subject to economic and political constraints, and “money glitches” are considered criminal fraud.
Scarcity and value: The value of money is tied to its relative scarcity. If money were truly infinite and easily obtainable, it would lose its value as a medium of exchange, leading to a loss of incentive to work and produce.

AI responses may include mistakes.

[1] youtube/v=tOm_aF_SB-k

[2] https://www.investopedia.com/modern-monetary-theory-mmt-4588060

[3] https://www.youtube.com/shorts/1v_7-zfrwzU

[4] wikipedia/en/Money_creation