President Donald Trump says he has directed the Treasury Department to stop minting new pennies, citing the rising cost of producing the one-cent coin.
He’s making an economics joke I believe. Econ 101 was a long time ago, so I could be off the mark here, or misremembering, but I believe money is counted every time it changes hands. Alice buys something from Bob for a nickel, Bob turns right around and purchases something from Alice using that same nickel. The nickel is still only worth 5 cents, but its responsible for 10 cents worth of GDP.
Or maybe not, and I’m REALLY misremembering econ 101.
He’s making an economics joke I believe. Econ 101 was a long time ago, so I could be off the mark here, or misremembering, but I believe money is counted every time it changes hands. Alice buys something from Bob for a nickel, Bob turns right around and purchases something from Alice using that same nickel. The nickel is still only worth 5 cents, but its responsible for 10 cents worth of GDP.
Or maybe not, and I’m REALLY misremembering econ 101.
Something something velocity of money something I never took econ 101.