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"The dollar represents a claim against the government." What does this even mean? A claim means that I can turn in the piece of paper and get something back. I
by devinhelton 8y ago
"The dollar represents a claim against the government."
What does this even mean? A claim means that I can turn in the piece of paper and get something back. I can turn in my coat check claim paper and get my coat back. Under a gold standard, I can turn in my paper bill and get gold back. But we are no longer under a gold standard. What is the thing I get back with regards to a dollar?
The actual thing bootstrapping the value of a dollar is that the dollar is legal tender for paying taxes and for "all debts public and private." The dollar isn't a claim against the government -- it's a token than can extinguish the government's claim over you.