Argumentative Essay About Fiat Money

“Hey, what your mom pack you for lunch?” asked the inquisitive 5th grader Brady to his classmate Luke. “Same as always – an apple, apple juice, apple sauce and an apple butter sandwich,” said Luke sulkily. “I don 't know why my mom loves apples so much,” he exclaimed. “What about your mom?” Brady grinned a little grin and said , “A Hershey Bar, chocolate milk, and chocolate chip cookies!!” Luke gazed into the abyss in disbelief. “I wish my mom was that cool,” he said. He thought for a few seconds and asked “Wanna trade my apple sauce for your Hershey Bar?” Brady sat and pondered on it. “Sure,” he said, “why not. Never hurt to mix things up a little.” The relieved Luke closed his eyes and began day dreaming of lunchtime. Trade and barter have been around since man figured out
Fiat money can best be described as money given value by government, which in any other case would have no value at all. According to Freeman, anyone who desires a good can simply acquire fiat money, by work or other means, and exchange it for what they want. He believes fiat money to be easy to deal with and easily valued amongst both consumers and producers. He goes on to say “Fiat money can be a useful medium of exchange in this economy because the government has the ability to print pieces of paper that are noncounterfeitable and costless to hold, count, or transfer” (144). Freeman describes a scenario between different islands and the different costs and efforts that each island must expend in order to communicate with the other. He makes the case that because fiat money holds no transfer cost, it is easily traded between islands instead of other means of trade in which one island may demand more of something they want than what the other island wants (139-140). This method seems to be the preferred method between Nations (islands) in today 's