A SIMPLE EXPLANATION OF MONEY
A Simple Explanation of Money
Copyright © 2012 Isuru Abeysinghe
The concept of money is something that has been around in human civilization for thousands of years. Yet, to this day, there is a large array of misconceptions, superstitions and outright lies concerning money. Some consider money to be some sort of supernatural phenomenon, like manna from the Gods, which somehow imbues upon each person a quantifiable amount of merit. Other people consider money as the proverbial “root of all evil” – a mechanism of enslavement utilized as the primary tool of either a malicious Devil or the combined society of greedy men. The aim of this document is to succinctly summarize the logical, practical and “real” definition of money and thus provide some insight into how these facts are relevant to the real problems and issues in the financial and social world of today.
To first understand what money is, you first need to acknowledge the “why” of money – the very pragmatic and logical underpinnings of why money originated and why is it beneficial to mankind. To do this, consider a world without money. Human beings still need certain things to survive and further things to indulge the special things in life that makes human existence more meaningful than that of an animal.
It is given that each human has the ability to create things of value, find things of value, or provide a service of value. However, as an individual, a human being has only so much capacity with regards to the range and variety of what he or she can create and do. They can grow food, or find it in the wild. They can build structures for shelter. They can make weapons to defend themselves. This is all very conducive to survival – but this is cave-man stuff, not the stuff of cars, airplanes and computers.