I’m going to get so many crap messages for posting that title. The spam bots hunt out words like “finance” and “investment” in bloggers tags and then plaster their inbox with promises of debt consolidated. Sorry already whittled myself down to a single overlord thankyou. . . .
At some point in the far distant past of human beings, a dude became good at fashioning axes and taught his offspring to do the same. The axe builders happily supplied their neighbours with axes, in return they got beets from another family and pots from another, but things changed. Roads developed, supply fluctuated, demand grew, trade evolved, some people even got greedy. A reliable system of IOU’s was needed. How was the dude who was traveling through town and needed an axe suppose to do a fair exchange? You can’t very well settle in and start growing beets every time you need to buy gas.
Currency was created, humans were now able to efficiently keep track of who is owed what exactly. But who exactly owes you something for holding one of these IOU’s called money? If I’m holding a penny, it must be the collective whole of people who accept the worth of currency who owe me. . . .. But it isn’t obligatory, you are perfectly in your right to refuse me one penny’s worth of labour if i demand it from you.
Alright so hold on, money is more like a giant raffle ticket draw. The prize pool is the whole of everything that has worth in human civilization. Everyone who’s holding a ticket is guaranteed to win something from the prize table. Luckily we have a little more direction over the prizes we win than trusting the spinning of a mesh wire barrel. Although that might be fun. Go to the store and buy ten “items” randomly drawn from the store’s inventory . . . .. I can’t think of a single store where i would want to do that.
So money was first created as something physical to represent something theoretical. A coin symbolizes worth beyond its material value. The $1 coin is made up of a few cents worth of metal, but the coin’s “worth” is $1. Modern day, worth is moving back into the purely theoretical. Most people swipe bank cards, or pump swipe cards, even vending machines on visa. The physical representation of worth, money, is becoming redundant. Now when you give the traveling dude an axe, you can keep track of what you’re owed without demanding he give you a valueless hunk of metal.
Disclaimer: This bolg does not endorse giving axes to transients.
Tags: adam smith, axes, beets, buy, civ, civilization, civs, currency, definitions, defintion, demand, development, evolution, exchange, finance, gas, goods, history, investment, money, people, produce, production, represent, representation, roads, stores, supply, symbol, symbols, theoretical, theory, trade, value, wealth, worth, worthless