Theory of Money
Created | Updated Jan 28, 2002
So money in every way a society decided to materialize (or more recent immaterialize) it, is just a symbol.
With it you can demand an amount of work or goods from the society which accepts it.
You can get money (in theory) by putting own work/goods in the great pot of all work/goods of this society.
Actually there are nearly unlimited ways to get money. Most of them are not related with producing any work/goods for society at all. This is where some people begin to criticise the whole system.
The trick is, that with money all goods/work can be converted into another without much affort. In addition with the free market it also makes a very useful way of controlling the production of work/goods. If special work/goods are needed, the amount of money you'll get for them will raise, so there will be people to produce these work/goods to profit from this fact. (This works also vice versa)
Of course to get this running along, you need the people to want money. But practise has shown that this is not a problem at all.
Naturally there are lots of problems related with money, but this is a basic theory to build up on.
With it you can demand an amount of work or goods from the society which accepts it.
You can get money (in theory) by putting own work/goods in the great pot of all work/goods of this society.
Actually there are nearly unlimited ways to get money. Most of them are not related with producing any work/goods for society at all. This is where some people begin to criticise the whole system.
The trick is, that with money all goods/work can be converted into another without much affort. In addition with the free market it also makes a very useful way of controlling the production of work/goods. If special work/goods are needed, the amount of money you'll get for them will raise, so there will be people to produce these work/goods to profit from this fact. (This works also vice versa)
Of course to get this running along, you need the people to want money. But practise has shown that this is not a problem at all.
Naturally there are lots of problems related with money, but this is a basic theory to build up on.
