Money and Its Creation

Money in its simplest form is the means of intermediary for exchange. The people exchanging money value products or services provided in different orders than other consumers of the same products.

Money is created when the cost of products sold is greater than the amount of energy put into creating the product.

The market without any intervention will prefer the producer that can create products at the least amount of cost (equity). This means the most efficient producer will sell product at the lowest cost, and the market prefers the lowest cost of comparable quality products.

Money pays people to produce at the most efficient levels (thus the least amount of cost to make a product).

A company, nation, or individual’s economic output is equal to its efficiencies at producing and exporting excesses of products and services to buyers.

If a company then needs to increase its economic output, it must sustain sufficient work force capable of maximizing production at the lowest cost.

A company sustaining their economic output must maintain enough labor force capable of maintaining the equity of production capacity. As company’s use technology advancement to bridge the gap from labor to production. Some labor is forced out “necessity” and instead technology is purchased.

With these concepts in mind, a company that focuses on maximizing efficiencies in technology and labor to decrease cost of production and sustain market acceptable pricing will profit the most.