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phailhaus 15 hours ago

That's the wrong analogy, because the butcher is giving money to the baker for the bread. If we we fix the analogy, then the baker gives money to the butcher so that he buys their bread with that money. The butcher cannot afford the bread without it!

hn_acc1 15 hours ago | parent | next [-]

And the baker then tells people to buy his bread, because it's so good, the butcher buys it every day!

Havoc 13 hours ago | parent | prev [-]

>so that he buys their bread with that money.

So basically like any business out there reliant on incoming cash to pay suppliers?

This doesn't magically create money any more than the rest of the economy...which has believe it or not CIRCULATING money