I saw them do it on Distraction, the show. I wonder if it is completely wasted or useful somehow...
2006-08-27 17:26:18 · 8 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
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2006-08-27 17:32:42 · update #1
Yes and no. It WOULD reduce inflation because the amount of money in circulation would be reduced. Anytime there is too much money in circulation the value of that very money is reduced because it is less rare, and when money is more common it is easier to get, and when it is easier to get prices must be raised since money is not as rare as it once was, and when money gets reduced in value and prices are raised (inflated) it is bad for the economy.
But it would also hurt the economy because the overall buying power of the population would be reduced. If a lot of people burned money it would mean they would NOT be spending that very money so businesses that WOULD have gained that money through a transaction would not get it and they would make less money, pay fewer salaries (wages) and pay fewer taxes.
So, as with most things in the economy it is a two-edged sword.
2006-08-27 17:35:53 · answer #1 · answered by Mr. Curious 6 · 0⤊ 0⤋
It seems like I burn my money a lot in stores, so I think I'm helping the economy. Bring your money over to me, and I'll show you the proper way of burning it.
2006-08-28 00:33:18 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Unless you're burning lots and lots of it to make the amount available scarce but then again there's an alternative with debit cards. Incidentally, the government burns old dollars to dispose of them.
2006-08-28 00:33:16 · answer #3 · answered by Ron D 4 · 0⤊ 0⤋
Burning it does not help. Mailing it to me is the only way it will help the economy.
2006-08-28 00:29:54 · answer #4 · answered by Chloe 6 · 2⤊ 0⤋
It doesn't do anything.
Although......judging from some of the financial statements I've seen, these companies must be setting bales of cash on fire to be creating these types of losses.
2006-08-28 01:22:02 · answer #5 · answered by intelbarn 3 · 0⤊ 0⤋
It will. That money will eventually be replaced.
2006-08-28 00:43:51 · answer #6 · answered by Art The Wise 6 · 0⤊ 0⤋
i guess in the long run maybe but then again, its a stupid move
2006-08-28 00:31:30 · answer #7 · answered by Michelle 4 · 0⤊ 0⤋
instead of starting a fire, which is bad on our environment, please, instead bring it to my house, where I have a great money recycling program...its better for the environment and great for compost...
2006-08-28 00:30:33 · answer #8 · answered by FavoredbyU 5 · 2⤊ 0⤋