MONEY: ITS HISTORY, IMPORTANCE AND EVOLUTION
Generally, money has been defined and viewed in numerous ways by various economists and people. Many view it as a basic medium of exchange that makes transactions easier while compared to barter. Others view it as a “fifth element” that gives men the power to govern other men (Mauss 1). A few others believe money is the blood that brings life to the world’s economy as it enables easy circulation and transfer of wealth. These definitions are most certainly justified. However, I view money as not just a medium of exchange or as a powerful tool to govern or rule over people but also as a standard for which value or wealth is measured, stored, transferred and accounted for.
For a fact, money has …show more content…
First, money was in the form of silver or gold bars/coins to signify its valuable properties. As time passed, paper notes were discovered and generally accepted as a means of payment. I would certainly describe paper money as the evidence of wealth which can be transferred from one person to another, and not just as wealth. This theorem of mine, is based on the fact that the materials viewed as money initially is totally more valuable than the materials used now (gold and silver vs paper and ink and copper coins). Despite the already great revolution of money, modern discoveries like debit and credit cards are beginning to shape a society that uses a significantly lower amount of physical cash in everyday …show more content…
Nevertheless, a number of economists think the above theorem is almost impractical anytime soon, as they believe that paper money will still be in use by Americans for much as the next 200 years (Appelbaum 1). A couple of factors are being considered in both propositions: the need to carry less objects around by humans (in situations of large cash amounts), the need to increase safety by reducing the likelihood of theft or loss of physical cash as compared to a PIN (personal identification number) controlled debit or credit card, and the need to reduce the cost of making additional currency notes. Notwithstanding these factors, I definitely think the second theorem is more practical as a lot of people are more relaxed when they possess their cash physically as compared to when all their cash is locked up in a card. Therefore, cash is likely to be in existence for years to
Generally, money has been defined and viewed in numerous ways by various economists and people. Many view it as a basic medium of exchange that makes transactions easier while compared to barter. Others view it as a “fifth element” that gives men the power to govern other men (Mauss 1). A few others believe money is the blood that brings life to the world’s economy as it enables easy circulation and transfer of wealth. These definitions are most certainly justified. However, I view money as not just a medium of exchange or as a powerful tool to govern or rule over people but also as a standard for which value or wealth is measured, stored, transferred and accounted for.
For a fact, money has …show more content…
First, money was in the form of silver or gold bars/coins to signify its valuable properties. As time passed, paper notes were discovered and generally accepted as a means of payment. I would certainly describe paper money as the evidence of wealth which can be transferred from one person to another, and not just as wealth. This theorem of mine, is based on the fact that the materials viewed as money initially is totally more valuable than the materials used now (gold and silver vs paper and ink and copper coins). Despite the already great revolution of money, modern discoveries like debit and credit cards are beginning to shape a society that uses a significantly lower amount of physical cash in everyday …show more content…
Nevertheless, a number of economists think the above theorem is almost impractical anytime soon, as they believe that paper money will still be in use by Americans for much as the next 200 years (Appelbaum 1). A couple of factors are being considered in both propositions: the need to carry less objects around by humans (in situations of large cash amounts), the need to increase safety by reducing the likelihood of theft or loss of physical cash as compared to a PIN (personal identification number) controlled debit or credit card, and the need to reduce the cost of making additional currency notes. Notwithstanding these factors, I definitely think the second theorem is more practical as a lot of people are more relaxed when they possess their cash physically as compared to when all their cash is locked up in a card. Therefore, cash is likely to be in existence for years to