Monday, March 21, 2011

Lesson 37 from The Hard Knocks School of Life

Money is simply the tool by which goods and services are exchanged. But if this tool were to disappear civilization would grind to a halt causing the death of great numbers of people by starvation.
Since money is the god of a great number of people I’ve spent quite a bit of time trying to define what it is. The fact that it is a tool that enables people to trade a variety of goods without resorting to barter is one of the chief definitions of money. What money is made of is to some degree irrelevant as paper is as plentiful as sand in a lot of ways. It is our faith that someone else will accept that piece of paper in trade for goods or services that enables us to use paper as money.

Other wise we would be forced to go back to gold, silver or absolute trade (IE farmer Joe trades one bullock for one porker or the like) which would definitely limit the variety of goods that could be traded as well as limiting the distance they could be traded over.

© 2011 Vic Jones

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