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[–] EyeOfHorus 0 points 1 point (+1|-0) ago  (edited ago)

If everyone mined gold, then who would cure your disease? Who would grow your food?

Each person performs the task he is best suited and most efficient. This is the foundation of free market.

The value of the doctor's labor is based on the value of the miner's labor. The value of the miner's labor is directly correlated to the amount of gold mined. Therefore, the doctor's service is valued in gold. eg, one hour of the doctor's service is equivalent to 40 hours of the miner's labor. It takes the miner 40 hours to mine 1/10 oz of gold. The doctor gets paid 1/10 oz gold for 1 hour of service.

Would you rather be a doctor or a miner?

In geographical regions devoid of gold, salt served a similar purpose. It could not be manufactured, but only harvested. Salt has intrinsic value as it kept meat from spoiling. Salt is salt and one persons salt was as good an another persons salt. It was a unit of wealth/value. Salt doesn't survive well when exposed to water.

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[–] avgwhtguy1 ago 

You're assuming there is enough gold to pay a doctor more than a miner -- if all the gold is tied up in savings or other parts of the economy, you cant pay a doctor without mining more gold, and there may not be anymore gold to mine. When we run out of gold, the economy cant grow. It doesnt make any sense to back a currency exclusively by gold unless you're a gold baron, or can make gold.

I think its smart to peg a currency to gold, and other value stores simultaneously so supply chains are less manipulatable, more in tune with the whole economy as opposed to mining, and the currency has more utility than just gold exchange

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[–] EyeOfHorus ago 

Your assumption that economic growth is contingent on an ever increasing supply of currency or gold is incorrect. There is something drastically wrong with your understand of money supply. So much so that I can't possible teach you. Sorry.

You don't make sense "assuming there is enough gold to pay a doctor more than a miner." Its called supply and demand.