Commodity money

1. Commodity Money - Commodity money is money backed by its actual value. The object has worth because of its material. Items such as gold or silver would be considered commodity money because gold and silver have a value that is not held by faith. 2. Fiat Money - Fiat money is currency established by a government or law. Fiat money does not hold actual value. U.S tender is worth the number printed on the bill because we have faith that it will hold true. If citizens did not have faith that the bills held true then the money would have no value because it is only paper. Fiat money has no intrinsic value. This means that if the government fell apart we would have to buy and sell with commodity money rather than fiat money. This is because fiat money only works if it has a…

The Conflicting Views of Adam Smith and Karl Marx on the Division of Labor and the Role of Money in Exchange In their works, Adam Smith and Karl Marx prove to have differing opinions on money and the division of labor. Although they understand money as a representation of value and as a medium of exchange, they arrive at different conclusions about the role of money in social life. Smith sees the division of labor as a constructive system and a means of furthering exchange, leading to the use…

Have you ever finish a book and said to yourself “Wow, I am going to reread this book again.”? Unfourntly, “The Ascent of Money” by Niall Ferguson isn’t a book where you will likely reread after the first read instead you will be saying “Is it finally over?” “The Ascent of Money” by Niall Ferguson explains how money came to be in our society by starting off where we see the first use of currency to the end where money has become something we can’t even touch. As a person who isn’t interested in…

In today’s western capitalist societies individuals are consciously and subconsciously immersed into the constantly growing world of technology, with the internet, social media and global connectivity. This emergence of new media and technology has profound effects on society and individuals. Thus, bringing forth the theory of ‘the Culture Industry’ and its relevance today. The culture industry argument was developed by Adorno and Horkheimer and focuses on the effects of capitalist mass media…

I asked several people the question “what is money?” and the responses I got were all very different. Several people gave the obligatory “cash” answer I was expecting, but some answers were more insightful than others. My waiter at a local restaurant, Michael Sovik, eloquently answered, “Money is paper currency with value backed by the U.S. government”. He then went on to say that he didn’t really understand how we are able to do that, and when asked about the derivative market he stated he had…

consumption is reduced it means that soon the company may go out of business (Gilmore, et al., 2010). The health regulations are also banning the company from making adverts o the tobacco commodities, and that’s is hurting the company’s customers base. The company will find it very difficult to explore new markets given that most if the clients don’t have the information regarding the commodity and the only way to inform then, is by the use if adverts but then the use of such is being banned.…

For example, a handle on a mug allows you to hold the mug without burning your hand. In the case of this record, the principle of affordance is somewhat diminished in a physical sense. I could play any record from my collection in the circumstances. However, it depends upon the end I am attempting to facilitate. I could play a faster, more hard-edged piece of music and afford a differing reaction from a crowd. Yet, when endeavouring to convey a particular emotion or mood, I opt for Acamar. Music…

Marx studied that we still see in modern capitalism is commodity Fetishism. A commodity according to Marx is a mysterious thing. It is an item that society gives meaning and value. Marx writes that a commodity is “ a very queer thing abounding in metaphysical subtleties and theological niceties”. When we begin to give these commodities “magical powers” they become a fetish to us. Fetishism of commodities when items appear before our eyes with no history , or no relation to the labor of the…

demand (Zuojun,2012). With over 1.3 billion people living in China the country should look to solidify their economic situation by driving up the demand from within its borders. China’s emergence as the largest economy in the world would no doubt change the monetary system in the world. Currently the US dollar is the dominant reserve currency in the world monetary system but if China over takes the United States as the largest economy that might change. This change would greatly impact the…

the accounts of several extremely skilled seafaring slaves, and how they managed to achieve freedom through their involvement in the global oceanic commodity trading. McDonald started the chapter with the account of Calico Jack, a “runaway slave” who “reveals a number of surprising facts of a global trade network”. (McDonald 99) Later he uses more case studies such as Thom Hicks, Marramitta the Cook, Nicholas Cartagena to further demonstrate the surprising roles these slaves played during the…