$1000

What would happen with the consumption voucher (消費券) of $1000 ?

Does it help local business ? What an idea ! We all know people would pay with the voucher and save up the money.

For those who are not familiar with the history of Europe, there was a time when South America was newly discovered and gradually conquered by the Spanish people. There was no short of good silver mines in Peru and areas around. In fact, when Francisco Pizarro first defeated the Inca Emperor and took over the place, he was amazed to find local children have lots of silver toys and decorations. When tons of silvers were shipped back to his home country, however, the Spanish king did not grow richer. In fact, the whole Europe saw drastic inflation and a marked fall in the price of silver - a simple result of excessive supply.

Consumption voucher and other kinds of money in effect follow the same rule.

PS. For myself, I would try to support local economy and buy a new chair for myself in the office. The one that I'm sitting on is 13-year old and I inherited it from my predecessor.