Can anyone explain why money even exists?
Why did society develop in a way that money became necessary and those who don't have any have to go without? Why couldn't humans just form a society where everything is owned by everyone?
- Larry CLv 72 months ago
It was hard to carry around things to trade, easier to have a commonly accepted medium of exchange that everyone considered to have value
- Mmm JLv 72 months ago
I agree with GS41... except... This is NOT "how we ended up in trillions of dollars worth of debt." The US ended up with the debt load because whether as individuals (credit card debt, home mortgage, auto loan, etc.) or as a government, we managed to normalize spending more money than we had available.
For individuals, there are several ways to deal with the debt - same with the government, but they do have the option of printing more money that people and companies can't use legally.
- GA41Lv 72 months ago
Initially, people traded by bartering. However, it is difficult to carry two bales of wheat and a cow to trade the wheat for a cow. This led people to find a more convenient device to trade. So they began trading things like gold dust, because gold dust had an intrinsic value of its own. After a while, they needed to standardize the trade mechanism, so they developed coins of a specific weight and value, which made it easier to trade. I could buy your cow with my coins, then you could take your coins and go buy wheat. Then someone had the bright idea to develop paper money, which was backed by a gold standard. This limited how much money could be circulated, because the money had to be backed by gold. There was a limit to how much gold was controlled by the country. Then the brilliant economist decided it was a good idea to remove the gold standard. That way you could print as much money as you wanted, you didn't need gold to Back it,his is how we ended up in trillions of dollars worth of debt. The government raises the debt ceiling and just tells the federal reserve to print more money. This is an interesting relationship. The government issues a government bond, the federal reserve bank prints the money out of thin air to give the government for the bond. Then the tax payer pays the bankers interest on money they printed out of thin air. The bankers get rich. The poor man's wealth is consumed by the inflationary impact of flooding the economy with more money, and the increase in taxes which will ultimately occur to pay the rising interest in addition to the cost of running the government.
- A.J.Lv 72 months ago
Everything owned by everyone is socialism officially and has lack of incentive to produce on an individual basis. There is also a lack of coordination and efficiency. No society is purely socialist as it fails. It works only on a local basis. Before money was not community ownership, it was bartering. Trading goods and services directly. It also is low efficiency in getting everything produced that is needed. Money is an accounting system instead of trading directly for goods or services. That is with capitalism or socialism. Every society needs a system of management.
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- EdwenaLv 72 months ago
That would be fine as long as I owned everything and you had nothing. In the meantime, you might consider that just because something seems strange, it is probably you and not what you think is strange that is strange.
- Anonymous2 months ago
Your question is two different things. You can type "history of money" in to Google and get a number of websites that will provide that information. It's about trade, the use of precious metals, drafts, coinage, etc. Separately, a society where "everyone owns everything" looks good on paper but it doesn't work due to human behavior. If I create something ... a sword, a cart, an airplane .... I have the human expectation of reward (compensation) for my creation.
- ANDRE LLv 72 months ago
Because people found that other people just walking away with their clothes was less than good.
Do you want to back to trading cows ?