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Wirking Money

By JamesM3 Jun 30, 2013 871 Words
When asked how money makes trade easier, to me I think, money, for the most part, does not change its denomination. The value of each bill is printing onto the face of it. When value is established up front, there is no need for guesswork or evaluation, an individual is automatically aware of the value of money. Trading is only simple, if one is not attempting to determine if the values of what they are trading are equal. For example, when you want to purchase a car, and want to make a trade with something that you own, you must determine if what you want to trade is of the same value. Would you trade chickens for a car? Probably not, most likely it would take many chickens to equal the value of a car. To purchase the car with money, which has a predetermined value, alleviates the guesswork from trying bartering the item you are willing to trade.

Purchasing items with money, makes transactions simpler, the value of the item you want to purchase is predetermined. Therefore if you have the money available, you make the purchase. The seller is content, the purchaser has what they want, and there is opportunity for the seller to be able make a future purchase without trade.

Money functions as a means to an end in personal relationships by allowing a process to take place without any hassle. For example, transactions are simplified. This being said, it means that individuals are able to complete an uncomplicated exchange of goods. A person, without an established monetary system, would have to make several trades in order to achieve his or her goal. Suppose someone wanted to purchase a lawnmower, but the only thing they owned was hedge clippers and there is no monetary system, only bartering. How many trades would that individual have to make to work up to the lawnmower they wish to own? An established monetary system would end the constant necessity of trading amongst each other. With cash on hand, the individual would have no need to barter or make any amount of trading other than the trade of money for the lawnmower.

Money serves as an economic facilitator because money allows for opportunity to make purchases and sells a simpler transaction. Economic status determines value. The value of money is determined by the state that the economy is in at the time. If the economy is in a poor condition then the value of money is lessened. However if the economy is performing well, then the value of money is increased. The value set on money and monetary systems, helps to determine the value of items that are purchased. Monetary value also assists the government. The taxes that the government sets upon its taxpayers are often times determined by the value of its money.

I do think that money is the lifeline to the economy. If the monetary system crashes, where does that leave the economy? In a state of chaos, perhaps, it would be hard to determine what state the world's economy would be left in. However, I find that there is a standard of life that is placed upon the monetary system. Money is what facilitates the purchases an individual makes, but it is also what the world bases their worth on. Many see money as what determines their own status in life. As in the more money a person has the better class of person they are. Individuals place their own value of self-worth onto how much money they earn and they do this by showing how many expensive items the individual is able to purchase. It would seem as though unless they are able to make elaborate and expensive purchases then they are unable to determine their own place in the economy. I work in customer service in retail and that is all I deal with on a daily basis is money for lottery, money orders, bill paying, and western union where people are sending money to other countries and such. There are times where we are dropping thousands of dollars in a day because of rent due, or a high lottery jackpot. But I really see the fact that more cash is being used instead of credit because of the fact that they want to pay for it now and let it be done after not have to pay for the thing later. Which I think is a good thing to do when buying things any way.

Money is used as a motivator because money is the baseline for getting what an individual wants. The poor do not have enough money, the rich have enough money to give away by the handfuls and yet no one is content. Money motivates those involved in social causes because it allows people get what they want. For those who are trying to prohibit or prevent a social cause, if they pass money to the right people, then they are able control the situation and attain the goal they are trying to achieve. The same could be said for the opposite situation, hand money to the right people and you are able gain people interested in promoting your cause.

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