Did I really just compare the Fed to a Marijuana Grower?


Every once in a while I will get a kid who just can’t wrap their mind around the idea that the Fed get’s to effectively create money supply out of nothing. They just can’t reconcile the fact that the mint gets to print pieces of paper that look like dollars and sit in a vault until the Fed decides to make them money by releasing them out to the public.

In an excellent display of teaching and total abandon of professionalism, I explained to a classroom of 40 students that the Fed was like a Marijuana grower with the monopoly on the market. They get to grow their good from nothing other than paper and ink and decide when to release it on to the market so they can manipulate the market price and everything else that it affects. 

 

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2 responses to “Did I really just compare the Fed to a Marijuana Grower?

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