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by js8 823 days ago
I think the best analogy for money is blood.

From the perspective of a household (a cell), or a company (an organ), money (blood) are a limited resource, which constraints what you can do. If you don't have that resource, you will die.

But from the perspective of the state (the organism) or the government (CNS), money (blood) is just an accounting and distribution mechanism for real resources, which are things like energy, raw materials and labor (oxygen, minerals and sugar). From this perspective, amount of money/blood can be adapted to conditions (for example in emergency, money/blood can be redirected to vital industries/organs), and it is created or destroyed internally, in any amount required. So the amount of money (blood) is not a constraint, resources (oxygen, food) are.