Every time I read or watch anything that has to do with the financial markets, I hear about inflation. Inflation is the general increase in the price of goods or services. Therefore, the value of money you currently have will be worth less as inflation increases. Usually, there is a financial regulatory entity that tries to control inflation. In the United States, that entity is the Federal Reserve.

As long as inflation is kept low and stable, then it is actually a good sign for an economy. However, if it gets out of control, there are negative impacts. Inflation masks the true value of products which makes it difficult to assess how much price increases are due to demand.  Unstable Inflation also makes it difficult to estimate and model future prices of stocks, bonds, and other investment vehicles because many of the models include inflation. As inflation increases, there is a lot of uncertainty that can slow economic growth.

Well fear no more! I have found the solution to controlling inflation.

The solution is the complete opposite of quantitative easing. Instead of putting money into the economy take money out. One cause to inflation is due to the excess supply of money. Based on the economic theory of supply and demand, decreasing the money supply should increase the value of the money. One easy way of doing this is by destroying cash.

As the Joker demonstrated in The Dark Knight, an easy method of decreasing the money supply is by utilizing gasoline and a cigar. In a way, the Joker can be viewed as an extreme utilitarian.

“It’s not about money. It’s about sending a message.”

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5 responses »

  1. Connie says:

    With the prices that gas is at these days, I think the amount of gas The Joker uses to burn the money is the most egregious part of this whole proposal! All jokes aside though, I’ve always been fascinated by how money is able to exert so much control over people. When it comes down to it (I don’t mean to get all philosophical), but money is merely a piece of paper with some fancy ink on it. We are the ones that place all this value on something that doesn’t really have any intrinsic value that we didn’t help construct. Therefore, I’m curious to see how the world would react if we pulled a Joker and just burned a huge pile of money. Will we descend into mass chaos, or will we able to combat inflation as you suggest? Or will we just print more money?

    • I think we would be back to the days of where one person traded his beads for another person’s clothes, etc. This type of an economy would eliminate the currency exchange and be kept very simple. No more need to develop equations that modeled how the dollar was doing or where will it be in the next four years. But then again, not everyone likes simple things.

  2. Jim says:

    Interesting idea to burn the money in order to curb inflation. Kind of reminds me of in Goldfinger, when the villain attempts to break into fort knox to set off a nuclear bomb, making the gold there poisonous and in so doing, increasing the value of his own gold.

  3. Jordi says:

    How is the idea of sending a message utilitarian?

  4. Jordi says:

    Here is when it really happened in Weimar Germany in the lead up to the National Socialist take over (that’s Nazis).

    Burning money.

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