The secret of money

The secret of money:

Let’s say the world consists of only four people: Adele 👵, Berta 👩🏻‍🎓, Chris 👨‍✈️ and Desmond 👤. Since it is a fair world, every single one has equally earned a fortune of € 10,- up to now.

Additionally, Adele inherited a brandnew car from her parents, Berta studied business and has become a saleswoman, Chris started to work as a Taxi driver, and Desmond meanwhile owns a bank.

👵: € 10,- plus 🚖
👩🏻‍🎓: € 10,-
👨‍✈️: € 10,-
👤: € 10,-

(Situation X 01 – see footnote)

Now Berta buys the car from Adele for € 10,- (X 02) to sell it to Chris profitable for € 15,- (X 03). Thus Chris has to borrow € 5,- from Desmond to buy it (X 04). Desmond lends it to Chris on the condition that he will get back € 10,- in four years. It’s the year 2011:

2011:

👵: € 20,-
👩🏻‍🎓: € 15,-
👨‍✈️: € 0,- plus 🚖
👤: € 5,-

Within these four years, Chris provides driving services for Berta, earning € 10,- (X 05). He then pays back € 10,- to Desmond (X 06). Finally, Chris sells the used car to Adele for € 10,- (X 07). So Adele again owns € 10,- and a used car, Berta owns just € 5,-, Chris still € 10,- and Desmond already € 15,-.

2015:

👵: € 10,- plus 🚖
👩🏻‍🎓: € 5,-
👨‍✈️: € 10,-
👤: € 15,-

During the next four years Adele sells the used car to Berta without profit for € 10,- (X 08). So Berta has to borrow € 5,- from Desmond (X 09) and will also return him € 10,- after four years. She has to earn this money by reselling the used car to Chris for € 10,- (X 10). After the repayment she is broke (X 11). Finally Chris sells the car without having used it back to Adele for the original price of € 10,- (X 12).

2019:

👵: € 10,- plus 🚖
👩🏻‍🎓: € 0,-
👨‍✈️: € 10,-
👤: € 20,-

What happened in those eight years?

👵 Adele is just as wealthy as before
* but her car is now a used one.

👩🏻‍🎓 Berta has consumed her € 10,- and earned € 5,- by trading
* and is already broke.

👨‍✈️ Chris has worked for € 10,- and used only € 5,-
* but is still not richer than before.

And Desmond?
👤 Desmond did not work at all
* and yet has doubled his wealth.

Everything works like clockwork.

Do you have a banking license for me?

—

Dedicated to President Mario Draghi, Chairman of the European Central Bank 2011-2019. In Gratitude.

And it was enough. Thank you, Mister President!

—

Footnotes:

X 01: A: 10+🚖 B: 10 C: 10 D: 10

First term:

X 02: A: 20 B: 00+🚖 C: 10 D: 10
X 03: A: 20 B: 15 C: -5+🚖 D: 10
X 04: A: 20 B: 15 C: 00+🚖 D: 05
X 05: A: 20 B: 05 C: 10+🚖 D: 05
X 06: A: 20 B: 05 C: 00+🚖 D: 15
X 07: A: 10+🚖 B: 05 C: 10 D: 15

Second term:

X 08: A: 20 B: -5+🚖 C: 10 D: 15
X 09: A: 20 B: 00+🚖 C: 10 D: 10
X 10: A: 20 B: 10 C: 00+🚖 D: 10
X 11: A: 20 B: 00 C: 00+🚖 D: 20
X 12: A: 10+🚖 B: 00 C: 10 D: 20

—