Scarcity as an important factor of money.

[TOZZIBLINKZ]

An individual may really before us to say that general acceptance is the only Major feature of money but that is absolutely not true because general acceptance is not the only Major feature that makes up money because money has other major features that we should be familiar about . For the purpose of this thread I will be mentioning one of the most important major feature of money which is scarcity . Majority of people think that it is absolutely insane for money to be scare this is possibly due to the fact that money is a very important and resourceful to that every individual must have and so making money to become scare is absolutely inhuman and unthoughtful . First of all you must understand that money in need is a very powerful and resourceful to and to majority of people it is viewed as an asset that speaks louder instead of action .

Assuming we all understand what money is all about has written above we should obviously see the reason why it should be scarce . Imagine if money was not scared and every individual on planet Earth had money to the extent that he or she becomes rich and wealthy , there is absolutely no individual that would want to work rather every person will want to stay indoors in his or her home and that will bring some sort of laziness and unresourcefulness to the life of human beings . In essence what we are trying to say is that not human being would find it a need to work in order to make money possibly because he or she has it in abundance .

 

[CALVINDOL]

The scarcity of money is absolutely one of the factor of feature of money that majority of people do not absolutely agree with . Did you get my secondary School Days my economics and commerce teachers usually talk about the scarcity of money and why important is that money become very scare . First of all we must imagine a world without the scarcity of money and by scarcity of money what we mean is that not every person have money easily but rather we absolutely need to work hard in order to have money , so now imagine that you live in a world where there is no scarcity of money instead individual can I have access to money as easier as possible . First of all there will be no individual that will want to work rather everyone will want to sit back in their homes chilling and there will be no sense of productivity in the minds of everyone rather everyone will always have all the ones because they have money in abundance .

In fact the people that make up the marketplace will be no more because there is absolutely no need of buying and selling since they have money in abundance . So with this scenario you will possibly agree with me that the scarcity of money is absolutely very important and that's absolutely give us a mind of confidence that in order to have money we need to work hard .

 

[Holicent]

Well. the main reason why it is important that money becomes scarce is because it will force people to save more. As money becomes more scarce, people will be forced to save or spend their money on things that are of higher value than before. This will cause an increase in the demand for goods and services, which increases the price of everything and makes everyone's income rise.

In addition, if money becomes more scarce, there will be less inflation and deflation. When there is inflation, you can buy things that you want for relatively cheap prices because prices have risen with the overall value of your money. However, when there is deflation, you can't buy things that you want as easily because prices have fallen with the overall value of your money.

 

[Jasz]

So many fail or refuse to understand the concept of money scarcity. Money is a medium of exchange. When money becomes scarce, it represents a limited resource and has value in terms of its ability to facilitate trade.

Scarcity can be defined as the inability to produce more of something. There are two kinds of scarcity: absolute and relative scarcity. Absolute scarcity is when you have only one unit available; relative scarcity occurs when there are more units than you need but not enough for everyone who wants them.

In a world where money exists, goods and services can be traded for goods and services that have limited availability. If there is too much money in circulation, however, it will take longer for people to get what they want because it will be more expensive for them to acquire goods and services that have become scarce due to being in high demand by others.

 

[Ithedicious]

People that understand economy will understand that scarcity of money will not in any way have any negative effect except it is too much , but when there is surplus and abundant money everywhere it will definitely increase and leads to inflation which will affect the economy of such country negatively and in most cases it is always better to prevent inflation because it will damage so many things and the smooth running of the economy.

That is one of the reasons why the Central Bank of every countries cannot print money even when they country is not doing well financially. The scarcity of money create demands and when people demand for money it will help improve the economy because people will be willing to work to earn money. So for me I do not see it as anything bad if money is scarce and the duty of every Central Bank of each countries is to control the circulation of money.