There is no "demand" for the dollar as a trade medium. There's only demand for goods and services and money.
He asked what backs up the value of the dollar, the answer is the government and our common belief in its legitimacy and value. Taxes don't even enter the conversation.
GG @✨Skolander✨, you just advanced to level 6!
I swear talking to Americans about economics is nothing but hell.
Taxes are a major part of the conversation, thats what gives the dollar its root demand
The fact that Americans need dollars to pay taxes is what 'backs' the dollar
they also need to pay rent, food and other shit.
They do, but they can't be compelled to buy that the way they can with us dollar denominated taxes
Moronic answer, that doesn't actually understand the difference between fiat money and the trade medium is.
in this case, the fiat money that is the US dollar is also the world's preferred trade medium
The government doesn't care how you pay the taxes
It sure does, it requires us dollars
if you gave them 1000 euro they would accept it.
they would not
they will just convert it and charge you the fee
```Note: Payments of U.S. tax must be remitted to the U.S. Internal Revenue Service (IRS) in U.S. dollars.```
that's the standard response
cuz they dont wanna have to deal with converting the currencies
Again, demand for US dollars to pay US taxes is what 'backs' the us dollar
we are not talking about the fucking demand
you absolute moron.
that is your answer @borealice
you don't understand the question.
You could just avoid paying taxes, what then, does it suddenly hold no value?
I might, but millions of Americans do not avoid paying taxes, primarily because of their paychecks having automatic deductions
not to mention corporate taxes
irrelevant fluff.
the core issue is what gives the dollar, the currency, its value
Taxes
do you understand the difference between the dollar as a currency, and a stack of printed out 100 dollar bills?
I do
what's the difference
enlighten us, humor the chat
a stack of 100 dollar bills would be physical objects. the dollar as a currency is an abstraction that relates to the system as a whole
what about what the 100 dollar bills represent to the person holding onto the money?
What if that person, like you, thinks "I can use this to pay taxes"
They certainly could
then is it equivalent to the currency?
since that's apparantly all you care about
I swear americans have this odd obsession with taxes no other nation has.
Since millions of American individuals and corporations owe taxes is US dollars, the dollar has a consistent demand floor
