Monday, April 03, 2006

It doesn't grow on trees

This morning's conversation:

Mordechai: Mom, where does money come from?

Me: Well, when Mommy and Daddy go to work, we get paid for our work. Then we usually put it into the bank so they can keep it safe for us and take it out when we need to buy something or pay for something.

Mordechai: Yes, but where does money come from?

Me: Um, I'm not sure what you mean, honey.

Mordechai: You get money from your work and they get money from their work and they from them...But what about the first money? Where does that money come from?

Me: Oh! (Silly me.) That comes from the U.S. Mint in Washington D.C. That's where they print the bills and make the coins. Maybe one day we can visit there but it's a long drive.

Mordechai: Aha. When I come home, can you show me where Washington D.C. is on my globe? I forgot.

P.S. I'm dreading tomorrow's question which will most likely be: Why can't they just make billions of dollars and everyone will be rich? See, I have no idea. I know the gold standard is a thing of the past but that's about as far as my knowledge of economics goes. Maybe, if I'm lucky, he'll move back to math or biology. That's much safer ground for me:)

5 comments:

Rebecca said...

I still wonder why they can't just print more. Would be nice wouldn't it. I guess we are in the fields we are in for a reason, don't understand economics, don't understand taxes (although you did attempt yours this year, kudos to you! how'd it go?) I do understand politics though but maybe because it has more to do with people? who knows!
I love how Mordechai's brain works! It's rare that a kid would say can you show me where that is on the globe? They would probably have just left it at that. He is a teacher's dream that kid!!

Shoshi and Daniel said...

What a bright kid!!! You could tell him about the Fed maybe. Or you could tell him that if everyone made their own money or there was so much of it than it wouldn't be worth a lot; like supply and demand type stuff.

Anonymous said...

Mordechai is always thinking and keeping you on your feet Ayelet. Im sure his teachers enjoy his intricate questions

Anonymous said...

Anonymous was me
sorry about that.
LW

Ari said...

well if they print more, each dollar would be worth less. it's called inflation