Where does money come from ?

This morning as I was getting my head together to continue the good fight in the world of workwear I was thrown off course by a six year old economist asking " Where does money come from ?"

"What do you mean ?" I asked.

" I mean, how do we get money ?" he qualified.

"Well, we work and get paid wages."

"But where does the boss get the money to pay the wages ?" he persisted.

" OK, you know that we sell boots, well we get them from a factory, and say we buy them at €10 and sell them at €12.50, well that meands that we make €2.50 when we sell them and when we add up all of the €2.50's the boss can pay the wages." God I'm good , I thought.

"But what do you pay the factory with at the start when you haven't sold any ?". Elliott persisted.

"OK, well, at the begining the factory gives us credit. They send us the boots and we sell them, hopefully, before we have to pay for them." Monday was not now starting off as I'd planned. Elliott furrowed his brow. At 6 he already had a better grasp of economics than I have just by the questions he was asking, but I think the concept of credit had him stumped...

" I think it would be much easier if we just made our own money and coins." He smiled. I smiled too. Yes it would be much easier.

But until we manage to get Elliott elected as Minister of Finance we'll just have to keep plugging away.

Sun is shining today , website was very busy over the weekend and people seem to be reacting well to the new homepage.

Onwards and upwards.

And twirling, always twirling.

Cheers,

Paul

P.S. Inspired by Elliott I am today listening to Money by the the Flying Lizards