You sir, have taken my response. I demand it returned to me. That or you must pay me damages of 3 eggs and half a chicken.Matt_LRR said:
Why does the Human race use curency?
- Thread starter Kiyotaki
- Start date
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Let's go back in time and find out.
"Me have chicken! Give me something for chicken!"
"Me no have anything"
"No chicken"
"Me have 5 shiny rocks"
"Me want shiny rocks"
"Ok"
Later
"Me have 10 shiny rock, what me get?"
"Me have 12 shiny rock, what me get?"
I honestly don't know. Maybe because we like knowing we have something to collect?
"Me have chicken! Give me something for chicken!"
"Me no have anything"
"No chicken"
"Me have 5 shiny rocks"
"Me want shiny rocks"
"Ok"
Later
"Me have 10 shiny rock, what me get?"
"Me have 12 shiny rock, what me get?"
I honestly don't know. Maybe because we like knowing we have something to collect?
LOL, or the government gives you money to try and get a job, thus you get minimum wage for sitting on your but all day while normal people are out busting their ass for money... damn government giving away money to people who dont bother to do anything with their livesNeedAUserName said:
Money is a polytheistic religion.
Stay with me for a second.
The only reason money (fiat money, that is) has any value is because people believe it has value (at least since we stopped making coins out of precious metals, anyway).
A dollar bill has no intrinsic value; its value is based solely on how many people believe it has value, and how much value they believe it has. They have faith that when they take that dollar bill in exchange for something, they, in-turn, can give it to someone else for something else. Every transaction in which real goods are exchanged for fiat currency is a small leap of faith.
The worth of the currency is proportional to the amount of that currency in existence, and the collective amount of faith that the people of the world have in that currency's worth.
Example: Which would you rather have? 100 British pounds or 1893.54 Mexican Pesos (equivalent amounts, based upon today's exchange rates). I'm going to go out on a limb and suggest that most people would rather have British pounds, since their economy has a better reputation and their government is much more stable. It's easier to put your faith in the Pound than the Peso.
Why do we do things this way? It's much easier to trade 'value' around using currency than it is to just trade goods and services. I don't have to work for the manager of the Burger King for an hour, or trade him a bag of tomatoes from my backyard garden if I want to get hold of a Whopper with extra ketchup. Currency makes trade much faster and easier, and simplifies the process of paying people for services like labor and expertise.
Stay with me for a second.
The only reason money (fiat money, that is) has any value is because people believe it has value (at least since we stopped making coins out of precious metals, anyway).
A dollar bill has no intrinsic value; its value is based solely on how many people believe it has value, and how much value they believe it has. They have faith that when they take that dollar bill in exchange for something, they, in-turn, can give it to someone else for something else. Every transaction in which real goods are exchanged for fiat currency is a small leap of faith.
The worth of the currency is proportional to the amount of that currency in existence, and the collective amount of faith that the people of the world have in that currency's worth.
Example: Which would you rather have? 100 British pounds or 1893.54 Mexican Pesos (equivalent amounts, based upon today's exchange rates). I'm going to go out on a limb and suggest that most people would rather have British pounds, since their economy has a better reputation and their government is much more stable. It's easier to put your faith in the Pound than the Peso.
Why do we do things this way? It's much easier to trade 'value' around using currency than it is to just trade goods and services. I don't have to work for the manager of the Burger King for an hour, or trade him a bag of tomatoes from my backyard garden if I want to get hold of a Whopper with extra ketchup. Currency makes trade much faster and easier, and simplifies the process of paying people for services like labor and expertise.
Because "you work or you starve" is one of the most basic guiding principles of civilization. Even in a communist system the producers would eventually be like "fuck you" to the freeloaders. True communism never addresses the Free Rider problem in economics, which is why it so often requires massive government planning in order to even work poorly.
And it does work poorly, or would you rather be Chinese or Cuban than American or Western European?
Also...
And it does work poorly, or would you rather be Chinese or Cuban than American or Western European?
Also...
Just remember to let the chicken lay the three eggs before you cut her in half. I've never seen a half a chicken lay an egg.The Blue Mongoose said:
I will just sum up my stance on the subject:
Why should I work my ass off for the benefit of all those stupid, lazy good-for-nothings out there? Apart from joy in your work, greater profit is really the only attraction for a more taxing job. If all work is rewarded equally(not at all in this case), one unduly punishes those who have more difficult tasks.
Why should I work my ass off for the benefit of all those stupid, lazy good-for-nothings out there? Apart from joy in your work, greater profit is really the only attraction for a more taxing job. If all work is rewarded equally(not at all in this case), one unduly punishes those who have more difficult tasks.
Calling your bluff. Do elaborate as to how the world would be better.benzooka said:
its actually quite simple. almost everything in life revolves around trade, money is simply a way creating an equal value trade. example, you want a car. in order to get it, you must give up something of equal value. currency is nothing more than a way to trade something of equal value. currency allows you to give equal value for that car. thus, you have made a trade of your money in exchange for that car. the money you gave to the previous owner of the car will then use it to make a trade of equal value to it.
well it would turn in to anarchy or worseKiyotaki said:
we use currency instead of bartering so everything is more standardised. So someone doesnt paint a fence and get paid in pigs and then have to go trade those pigs for the table that they wanted to buy.
money is just easier
We use currancy as a form of trade. I have two mangos, but need a peice of wood. Give you a Mango for wood. Oh, you havent cut any today, well give me a slip of paper as an I.O.U. and I'll get the wood from you when you cut it.
Currancy is just an I.O.U that is binding.
Currancy is just an I.O.U that is binding.
if all forms of barter were of equal value, we might be able to forgo currency. however, very few barters are equal. "I'll make you a new pair of cloths if you put a new roof on my house."
eh, sorry, that ain't gonna cut it!
eh, sorry, that ain't gonna cut it!
People want different things than the ones they own, and a standardized 'middle man' item is easier than trying to balance each transaction independently.