As we think about the essay topic, we can immediately relate prices and money to subtopics such as trade, production, sales, marketing, etc. as these things allow prices to be thought of and money to accrue. Although these two questions are asking different things, they can be interrelated and impact one another in more than one way. To create pricing and prices of products, we must think of the economy and the value that consumers are willing to pay (money) and we use money to purchase the produced products by accepting the prices that are set. But what exactly are prices and what is money?
The Price is Right
As consumers, we see prices on anything of value including products and services. Prices are according to Per L. Bylund in chapter 2 of “The Seen, The Unseen, and The Unrealized,” he says,
“prices can be different in different stores, and they can vary over time because of inflation, competition, and temporary sales” (Bylund, 2016, p. 15).
This is true because even today, we as consumers see prices change all the time to keep up with inflation, market prices and competitor pricing as well. For example, I work in a retail store here in Stillwater, Ok and every week we do a task called markdowns or markups in which we either markdown the current ticket prices or we mark them up according to inflation occurrences that week and market prices based on brand competition. We also can look at prices in more of a valuable term situation in that valuation is not in the prices and monetary value itself but rather in the exchange of goods and services. In this chapter, he uses an example between two people, Adam, and Adele, who each value different things as one values an apple and the other values a can of coke. Adam might exchange a coke for an apple as he values an apple more highly and Adele might exchange an apple for a can of coke in which does not necessarily mean that this exchange is equal but rather allows us to see the difference in value, they have in mind in thus would impact their versions of a maximum “price.”
Per L. Bylund also explains in this chapter, the idea of money as he says,
“As generally recognized by economists, money is a universally accepted medium of exchange. In other words, money is useful – that is, we consider it valuable – because we know that we can offer it as payment for goods that more directly satisfy our wants” (Bylund, 2016, p. 17).
As we discussed in Chapter one of “The Seen, The Unseen, and The Unrealized,” we discussed the importance of exchange and how in a simple exchange, people have an incentive to create things of value such as entrepreneurs produce goods and services of value for consumers. When the production of valuable goods and services are produced, they then can be offered in exchange for what is considered more valuable to the other person involved. We can relate this to the exchange of money as money is considered valuable but is used to exchange for other things such as other goods in services that a consumer may value more or need.
Is Money the Root of All Evil?
Money is one of those material things that many people have whether it is a little or a lot but when it comes to money, many consider it valuable and of their greatest desire. In reading, “Francisco’s Money Speech,” by Ayn Rand, she is responding to the question, “So you think that money is the root of all evil?” as asked by Francisco d’Anconia. According to Ayn Rand, she says that,
“money is a tool of exchange, which can’t exist unless there are goods produced and men able to produce them” (Rand, 2002).
Money is a medium used to pay or use in an exchange for goods and services and we can relate this concept to Per L. Bylund’s, “The Seen, The Unseen, and The Unrealized,” chapter two, when he talks about entrepreneurs (men) creating products and services that are of value and being able to exchange those valued goods and services for other valuable materials such as money for example. We can also relate this concept to his idea of prices, as money is used to pay for said prices created by entrepreneurs, marketers, and business folk alike.
We can also infer from Ayn Rand’s text that she believes that money is more of a tool rather than a means to fulfilling our every desire. She says,
“But money is only a tool. It will take you wherever you wish, but it will not replace you as the driver. It will give you the means for the satisfaction of your desires, but it will not provide you with desires” (Rand, 2002).
I agree with Ayn Rand’s view as money is only a tool and can rather be thought of as a stepping stone that can partially fulfill our needs and wants for a moment and take us farther along the journey but in order to completely fulfill our desires and meet that end goal is to focus on the mind and realize that it is us who really get us there all the way.
The Meaning of Stable Money
In reading, “The Meaning of Stable Money,” by J. Tamny, I inferred from the text a lot of similarities to Per L. Bylund’s text in chapter two, “The Seen, The Unseen, and The Unrealized,” in that it indirectly referenced the idea that the value of money is almost irrelevant and that its value comes from what you exchange it for or for its purposeful use just as we read in Bylund’s literature in chapter two. As humans, we value money because it is a way for us to obtain material things and purchase services to fulfill our wants and needs. The value of money is important and useful in a variety of trades, shares, buying, etc. According to J. Tamny, he states that,
“Stable money as a measure of value doesn’t ensure that every trade will yield better or equal to what was produced, nor does it ensure that every investment will yield positive returns – but it does ensure that we won’t lose value for using money to buy, sell, lend, borrow, or buy and sell shares” (Tamny, 2022, p. 35).
Essentially, we as consumers, traders, etc., are what makes money valuable and adding in how we utilize the money plays a factor as well. Just as the reading said, what we use the money for in exchange for something else does not always mean that it’s the same value for the material or items produced. In doing exchanges that involve any monetary values, the value of stable money does not go away.
Conclusion
Prices and money are compatible and interrelate with one another cohesively. When we talk about prices, we saw in the readings that prices are what is used to show value about how much an item produced is and sets the value a consumer may be willing to pay with money. Money on the other hand is of a higher value some may say as money is what a person may highly desire and nowadays is what is needs to fulfill our needs as humans. As we read in all the readings, each gave their own perspective to pricing and money as they had very similar thoughts yet different opinions. But what we can infer and take away from said readings is a better understanding of prices and the value of money.
References
Bylund, P. L. (2016). Chapter 2: The Price Is Right. In Seen, the unseen, and the unrealized: How regulations affect our everyday lives (pp. 15–26). essay, Lexington Books.
Rand, A. (2020, April 13). "Francisco's money speech" by Ayn Rand. Capitalism Magazine. Retrieved February 24, 2023, from https://www.capitalismmagazine.com/2002/08/franciscos- money-speech/Links to an external site.
Tamny, J. (2022). Chapter 2: The Meaning of Stable Money. In The money confusion: How illiteracy about currencies and inflation sets the stage for the Crypto Revolution (pp. 29–41). essay, All Seasons Press.