(The following is a special Letter to the Editor as a school project by 8-year-old Madeline Aller.)
To the Editor,
Money is used to buy, sell, and trade with. Throughout history people have used different kinds of money like rice, shells, or barley. These could also be used to barter with. Bartering is when you exchange goods or services with another person.
I did that once with my bread. I exchanged a loaf of bread for a dozen eggs. Bartering does not always work because if I tried trading my bread for a haircut, I can’t go trade my haircut for flour. Each person has to have something the other person wants or needs. The economy can’t rely just on bartering which is why we have money.
Our money isn’t the same as it used to be because of inflation. Inflation is when the government makes a lot of new money. We think that sounds good but only for the people who get it first. They are able to buy what they want before the prices go up. But the people who don’t get it first, don’t get to buy anything before the prices go up.
When the government makes more money for the economy, the less our money is worth. If my grandpa doesn’t work anymore, then inflation is bad for him because the government monster is stealing from his savings. The monster controlling everything actually hurts people and the economy.
I learned that the dollar bill has lost more than 96% of its value since the Federal Reserve began in 1913. The Federal Reserve is a lot of rich bankers and some people from the government controlling all banks and the supply of money in our country. Inflation for a little bit each year adds up to be a whole lot over a hundred years and decreases our dollar’s value.
My great grandma used to be able to get a hamburger for 5 cents, now a hamburger can be five dollars because of that sly creature. If the supply of the dollar bill increases, then the value of the dollar goes down and buys less goods and services. The government creature controlling the dollar is harmful to the economy.
Madeline Joy Aller