What is Money?
That is a very, very fine question, and one that I've been wondering about for quite a while. I can remember, as a very young child, counting out coins, and then, I knew, this is money. Now, as an adult, having a bit more experience and exposure to the world, I am dissatisfied with any explanation of money, thus I'll share my thought, both as an exercise for myself, and perhaps some analysis that may help others as well.
As I type, in front of my keyboard, lies a twenty dollar bill.
With this $20 bill, I could buy a meal, buy a DVD, buy some gasoline, buy a share of some companies, buy my way into a dance club, deposit it in the bank, put it back in my wallet, etc.
In other words, I can either trade this $20 bill for something, or I can hold on to it, trusting that I'll be able to buy something of more-or-less the same value later on.
Commonly, it is said that things that are purchased are either a good, or a service, or some mixture of the two. In reality, what is really meant by both is simply energy.
A Meal -- we trade money for the energy that it took to provide that exact meal, in that exact place, at that exact time, along with the atmosphere that surrounds it prior to eating, while eating, and after eating.
Now, a different perhaps counter example:
I have an agreement with my neighbor that anytime I pick an apple of her tree that I'll pay her one dollar. The apple tree has been growing there for a long time, and the neighbor does not do anything to maintain the tree.
The dollar appears to buy the good will of my neighbor, and prevents her from doing something nasty to me, like calling the cops for tresspassing and stealing something that belongs to her.
So, money motivates people to do things, which in this case means not doing something.
It motivates people because they want things themselves, and they can use money to fill those wants.
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Money, the ability to motivate others to do work
Energy, the ability to do the work itself
Almost one-in-the-same, money & energy.
As I type, in front of my keyboard, lies a twenty dollar bill.
With this $20 bill, I could buy a meal, buy a DVD, buy some gasoline, buy a share of some companies, buy my way into a dance club, deposit it in the bank, put it back in my wallet, etc.
In other words, I can either trade this $20 bill for something, or I can hold on to it, trusting that I'll be able to buy something of more-or-less the same value later on.
Commonly, it is said that things that are purchased are either a good, or a service, or some mixture of the two. In reality, what is really meant by both is simply energy.
A Meal -- we trade money for the energy that it took to provide that exact meal, in that exact place, at that exact time, along with the atmosphere that surrounds it prior to eating, while eating, and after eating.
Now, a different perhaps counter example:
I have an agreement with my neighbor that anytime I pick an apple of her tree that I'll pay her one dollar. The apple tree has been growing there for a long time, and the neighbor does not do anything to maintain the tree.
The dollar appears to buy the good will of my neighbor, and prevents her from doing something nasty to me, like calling the cops for tresspassing and stealing something that belongs to her.
So, money motivates people to do things, which in this case means not doing something.
It motivates people because they want things themselves, and they can use money to fill those wants.
###
Money, the ability to motivate others to do work
Energy, the ability to do the work itself
Almost one-in-the-same, money & energy.