Why does the world need money?
Money is a "medium of exchange" that is, a good that can be exchanged for other goods readily. Let say we live in a world with no money. You are a corn farmer, so what you have is extra corn, you want a cow. That means you would have to go find someone trying to get rid of a cow that wanted corn. Next you want shoes, now you need to find a cobbler that needs corn. Every time you want to buy something you would have to find somebody to trade what you wanted for corn. And anyone who wants corn has to find a farmer willing to trade whatever they have for corn. As you can see in a large market a Straight barter system (that is what I just described) would be complicated and inefficient. So whet would happen is people would find a item that had value, was light weight and easily recognizable and use it as a medium of exchange (aka money). Examples are gold, silver, beads (with the native Americans), tobacco (in Colonial America), and cattle. Now you could sell your corn for gold then turn around and buy whatever you wanted with the gold. You can see how that would be much easier. Later on governments got in the currencies (or money) business and removed the ties to actual value (dollars are not backed by gold or anything more than a government promise). If you want I can give you some links to explain this more, it is kind of complicated.
Why do we need money?
To appreciate the importance of money in an economic system,it is instructive to speculate on what the economy would looklike without it (before Sir John Money created it in 3016 BC). Without money individuals would have to devote more time to buying what they want and selling what they don't want; peole would have less time to work and play. ( Bartering ) Without the bartering system, we're left with the socialist / communist economies. You can research the Soviet Union/Cuba/ and see where this goes. Our problem is a portion of us are too capitalist (busy bee's) and a greater portion of us are comunists (lasy grashoppers). Until a society can come to a BALANCE between work ethics, money will be necessary to identify the different types.
How old is the concept of money, and why did the world need it?
By creating Money, we are trapped in our own trap which is irreversible.....We are the only animals who cannot live (eat, sleep and fulfill our needs) on our own.. We human beings are such incapable Animals...So we exchanged what we had in plenty to get something that we dont have.. We exchanged Rice for Salt.. Vegetables for Meat.. and so on.. So thats how Market started.. Then comes a confusion, how much Rice for how much Salt... So to get rid of the confusion, we created Government, printed Money and fixed rates for the items... Thats how Business started... Now there is no need for wandering places like before.. sit in a place..do something what u know.. earn money... get anything that u want giving money.. so we settled in one place.. to avoid intrusion of our land where we settled we paid for the land and bought it for us.. then we bought animals with money.. Now we found easy ways to make money.. Now we started earning more than we wanted.. this made us rich.. obviously that made some poor.. Now we get more rich.. enough money to buy people and work for us.. now we no longer have to work.. Others will work for us.. we can eat whole life simply ruling others..... PURPOSE - Money is something that was created due to our inability to live on our own.. To get rid of confusion..RESULT - But Money gave usRight to own land and resources ( who are we to own a natural resource? Its common for all living creatures)Right to own Animal ( afterall we are animals.. who are we to own other animals)Right to own Human ( At present, we are not just owned by one but many)Its just like this simple story... 10 people are standing under a tree which has 10 fruits.. The strongest 2 of the 10, managed to get all the fruits.. The strongest ate five fruit each.. this made them more strong.. remaining 8 people became their slaves bcoz they became more weaker without food... the strongest used their slaves to cultivate the seeds of the fruit... Now there is 11 trees.. Now the strongest became more stronger and fed the slaves with just one fruit each.. but now slaves cannot save a fruit to cultivate their own tree.. coz if they do it, they may die of hunger..Richer is getting richer, Poor is getting more poor.. Poor is thinking that he will get rich one day.. But that is never possible..By creating Money, we are trapped by our own trap which is irreversible.....
Why does money make the world go round?
Money is not real, its just something made up and stems from when people traded goods.... i know why we need it but i just think the world could be a better place without it. our attitudes/way of life would have to change completely and i know it wont happen in our lifetime but i can see a better world where money is not in the picture. why should a starving person in africa not have the same quality of life as the rest of us. Why does is there debt? if you think about it money is imaginary, we just made it up so why cant we unmake it or change how it works? how about a world where every human being has a certain amount of credits to spend in their lifetime. at school we'd be taught to pick a job we want to do and no job should be more important than another and people would be happier doing jobs they want rather than the ones that make the most money. does anyone else have ideas like this or am i completely insane?