The market can reclaim money from government…This is why the castaways value Thurston Howell’s paper dollars: because whatever absurd amount he may have brought with him for “a three-hour tour,” that amount is now fixed. Dollars are the most stable currency available on Gilligan’s Island, and the government has nothing to do with it. Or rather: the absence of government has everything to do with it. If people are allowed to pick their own preferred money, they will pick whatever holds its value most reliably.
The first season of Gilligan’s Island is out on DVD and I’ve been watching it. I was actually thinking, and thinking myself silly for even considering, about these same things. I found it really amusing that professional economists would analyze the economy of Gilligan’s Island.