Money Through An Economic Perspective
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Cost
Money and cost are two different things, money is a form of exchange and is normalized through countries. Cost can fluctuate between two similar entities, it can also be negotiated. These ideas are presented through Bylunds book “The Seen, The Unseen, and The Unrealized.” When understanding money's significance, it is easily seen through the weight of the dollar. Cost however, changes value for people. While a snickers bar may be worth two dollars to me, it may only be worth one dollar for another person. In processes like bidding is when we see how people differently value their money.
“The person who values a good most highly, in terms of his or her subjective valuation of money, will come out on top in each bidding. The realized value of each good, therefore, is the highest possible” (p. 22, 2016).”
Bylund further explains how sellers make money off of willing buyers. The willingness of people to exchange their hard earned money is what makes the exchange worth it to everyone. It seems that the value one holds for a product determines its cost. Competition keps buyers through possible increases in cost, and sellers benefit through the goods. Voluntary exchange was another common phrase used in his writing. This help explains why people are okay spending money on goods at that set price. It is interesting to think about how the value of a dollar has changed through the years. As the economy shifts, we have begun to see increased rent prices and grocery goods. This increase in price around us has therefore made the value of a dollar smaller. Without money, and the exchange it provides, trade would be very difficult around countries. Not everyone has the same value of one thing for another. Some people may be willing to trade a cow for a pig, while others may view the exchange completely opposite. When thinking about money in pertains to trade it is important to look at it from this standpoint.
Money
Every country contains some form of currency. In order for the economy in tact, is it important to have a clear understanding of money's significance? Many people view money through a different perspective. Depending on if someone came from money, or came from no money, it shapes their view on its significance to society. In today's economy, money serves as an exchange bargain. Money was given exchange value and is therefore worthy to exchange for other goods. One thing that makes money unique is that the given value is equal in weight. While some people may think some products are worth more money than others, money itself is its own exchange value.
“Money invariably finds its way into the marketplace as people need a means to expand exchange beyond simple barter.”(Tamny, J. 2022 pg.32)
Value
Because money holds value, some people think that too much money creates evil.
The “Francisco's Money Speech '' by Ayn Rand does a great job specifying the potential evil associated with money. While the war aspect is less seen today, the greed aspect is widely seen in today's culture. Many people have shown to become too invested in money and let it affect their character. Money only has power over society today as an exchange. In today's culture money can buy significance as well. I think it is important to note that not everyone can make money. Everyone has the opportunity to make money. People end up with money in different ways, but as informed through Francisoocs speech, money must be earned. Another large point of this is how money and fraud go hand in hand. The access of money allows people to have access to more in society. Fraud and misuse of money are done so by people with bad intentions. The men or women who make the most money, also have the intelligence to do the worst with money.
“Money is made–before it can be looted or mooched–made by the effort of every honest man, each to the extent of his ability. An honest man is one who knows that he can’t consume more than he has produced.”(Rand, 2020, p. 1).
I believe that the root of money is that it is made and earned through hard work. The more intelligence and knowledge of money someone has. The more they can contribute to society. Money is not evil, but it can be used in evil ways by evil people. Money holds power, and the power can go both ways. Money's value is different when it is not earned, people who possess another person's money often do not reap the full benefits of the money. This is relevant to what Rand says because it relates back to the fact that money is made. If held in the hands of an honest being, money can be consumed and produced in healthy ways.
Works Cited
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.
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.
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.