[imtringued]

Money is a public good as well. Money taken out of circulation is bad for the economy and drives a big chunk of economic problems in society. It's easy to tax so the valuation argument doesn't even make sense. There are companies with $100 billion or more in their bank accounts. That's a million paychecks that didn't happen.

Isn't it weird how it is possible to prevent other people from working by simply withholding money? Meanwhile we expect the people who couldn't work as a result of this withholding of money to keep working, we consider them lazy and not worthy of sympathy.

[sooheon]

This is a total misconception. Anyone's $100B in a bank account has no bearing on money supply. In the short term, yes, money is taken out of circulation. But if that causes increased demand for liquidity, and banks are willing to meet that demand at the interest rate set by the central bank, money will be created by the loan that is initiated.

What dries up money circulation is not any one company's hoarding, but the banks' willingness to lend as a whole, and the economy's desire to borrow and spend as a whole.

Recommended reading: https://www.bankofengland.co.uk/-/media/boe/files/quarterly-...