lots of great points on how the money enters the system to begin with, how taxation creates demand for currency and modulates spend
but in the coupon experiment, the kids are essentially serfs, regardless how taxation is changed they have to pay that tax or receive penalties, you could raise taxes to 100% (a chore every hour) ; they can do nothing else besides chores and they will have to submit or face penalties.
in the real economy aren't participants semi-rational, if you were to raise taxes to 100% there would be no incentive to produce goods or services, you can creates all the coupons in the world, but they aren't that useful unless you have real underlying production. Similarly you would expect more production and spend with the inverse, but less demand for the currency via taxation.
the home example is not a perfect model of reality. what i'm thinking to do is make the "household fiat currency" fungible with dollars at a randomly generated exchange rate. i haven't sat down to work out the tokenomics yet though:-)
lots of great points on how the money enters the system to begin with, how taxation creates demand for currency and modulates spend
but in the coupon experiment, the kids are essentially serfs, regardless how taxation is changed they have to pay that tax or receive penalties, you could raise taxes to 100% (a chore every hour) ; they can do nothing else besides chores and they will have to submit or face penalties.
in the real economy aren't participants semi-rational, if you were to raise taxes to 100% there would be no incentive to produce goods or services, you can creates all the coupons in the world, but they aren't that useful unless you have real underlying production. Similarly you would expect more production and spend with the inverse, but less demand for the currency via taxation.
the home example is not a perfect model of reality. what i'm thinking to do is make the "household fiat currency" fungible with dollars at a randomly generated exchange rate. i haven't sat down to work out the tokenomics yet though:-)