Development in technology has greatly changed the importance of traditional commodities. In today’s world, the constant development in science of creating products smaller, better, cheaper has become a norm in innovation. This has resulted in creating a slight shift from commodities that were once the epistle of the money system. Major high-class gadgets like iPhones and computers are now being made with simple and ‘non commodity’ materials and their prices directly compete with speciality minerals. It is evident that we cannot rely on old commodities to set our money system, as it is medieval thinking and doesn’t go with our constantly developing world. Although, Metallism started as the basic foundation of barter, it provided many benefits such as helped promote universality of barter through the introduction of precious objects and minerals. It set a real proof of value and a fair stand of value for everyone. While, commodity such as gold is used in computers today, but this might not be the case in the future due to the fast tech-age we live in. A negative aspect about the metallism school of thought is, that it has no central system to regulate barter. Throughout history, counterfeit goods have been created to replicate commodity goods. For instance, in the Aztec Empire, cacao became so important as a means of exchange that it produced its own counterfeiting industry. According to the book History of Money, Criminals would take the small husk of the cacao bean, empty it, and replace it with mud. They then sealed the husk and mixed the fake cacao beans with real ones to further obscure them (Weathorford, 1997, pg 19). There are countless examples of commodity goods having their own counterfeiting industries across the world. This is risky for a society as a whole, and risks many people’s wellbeing. There is also an issue of placing a monetary value in commodities, as it’s hard to keep track of the supply and demand. Chartalism, on the other hand, makes barter more accessible for people. …show more content…
It leads to more barter exchanges as more people have the opportunity to use money. It provides and establishes a trust of fair payment and price for money. Through the authorization of a central system like a government, it has helped unite people. Chartalism’s major advantage is also it’s major weakness, as the chartalism money system cannot exist without a central system or higher authority. Countries facing wars or revolutions, have to use foreign currency when their own currency is deemed unreliable and corrupted. For instance, when Zimbabwe faced hyperinflation after the Second Congo War, they had no choice but to adopt a foreign currency such as the US dollar. To date, the US dollar is the most widely traded within Zimbabwe for commerce (Hanke 2008). Consequently, Zimbabwe blamed its financial situation to the economic sanctions given by the USA. This also shows the imperialistic nature of money, how one country benefits when their currency is used widespread. There are many pros and cons for both Chartalism and Metallism money systems. …show more content…
We have to acknowledge and understand the nature of our society, in order to make a better decision. The internet and social media have vastly brought people together and united the world. We need a money system that complements and works with the direction our society is taking. We already have central governments watching our every move, it 's more beneficial for them to regulate the money system as it provides authenticity, security and reliability for barter at the least. Even though, central authority will be in both metallism and chartalism but in chartalism, we have the choice to pick our future leaders and decide our future from politics. Top