Americans are in a time of rising labor unrest and activism, including multiple unionization campaigns, regulatory and legal changes to make it easier for unionization efforts to succeed, the “Fight for $15” minimum wage agitation, and the Hollywood writer’s strike. However, such discussions and campaigns seldom approach the issues involved from a moral perspective, beyond the implicit presumption that trying to force others to give you a raise must be moral.

The 2023 graduation season is now underway. The famous, generous, and politically powerful (especially those currently in federal office, who are cheaper because they are banned from being paid for giving speeches) will be dispensing (often very limited) wisdom about the “real world” to hundreds of commencement audiences across America.

In a market economy, money is the medium of exchange; producers exchange their goods for money and then exchange that money for other goods. As the production of goods increases, the demand for money expands. Conversely, as economic activity slows down, the demand for money follows suit.

Price changes also affect the demand for money. An increase in the prices of goods and assets increases the demand for money, since people now demand more money to purchase goods that are more expensive. Conversely, a fall in goods prices results in less demand for money.

In March 2021, Dominion Voting Systems—a company that produces electronic voting equipment and software—sued Fox New Channel for $1.6 billion. Dominion claimed the company had been harmed by allegedly false claims made by Fox program hosts and guests about Dominion’s role in alleged efforts to rig the 2020 US presidential election. In April 2023, Fox New Channel settled with Dominion for $787.6 million.

Since money is used in all transactions, including investments in physical goods and financial instruments, the supply of money is extremely important to the economy and financial markets.

Accelerating money supply growth typically leads to stronger economic activity and higher prices, while decelerating money supply growth (or decline) typically leads to weaker economic activity and lower prices.

Federal Reserve data shows $98 billion of deposits left the banking system in the week after the Silicon Valley Bank collapse. Most of the money went to money-market funds, as the Bloomberg data shows that assets in this class rose by $121 billion in the same period. The data shows the challenges of the banking system in the middle of a confidence crisis.