We live everyday understanding that the acquiring of goods relies heavily on purchasing those items. For this we use money. Or more specifically currency.
Currency is basically a unit of exchange that facilitates the transfer of goods and/or services. The idea of currency stemmed from what we all recall as the barter system. Over the course of history things like precious metals, things like cigarettes, even types of conch shells or bank notes would serve as barter items. This became what was called the coincidence of wants. Two people possessing what the other wants. Thus upon the offer of exchange the barter was completed.
"I'll give you these gold nuggets for that silver chain and a handful of cigarettes" and the second party agreeing is a simple example. Herein the value was arbitrarily agreed upon. The value was in the eye of those bargaining. Some may not see the silver chain as being a fair trade or barter. The value was subjective. It was contingent on the consumer and the merchant. Or just two commoners wanting something the other is offering.
Today we live in a modernized version of this in which currency has a medium exchange value. Money is the most popular and commonly used form. But whether we are using credit cards, a loan, or straight up cash, etc it is a token or an abstraction. The currency is given a monetary value by the governing body in which the user is procuring or selling. For example in the US a $1 bill is given the value of $1 and it is recognized for that amount.
The reality is it is not worth $1. This is easier to understand if we were to take that dollar and travel abroad. The medium exchange would alter to fit the assigned value it has in the country in which you plan on using it.
The most amazing thing is money of any origin is just that, an assigned value. A value or amount that we except. We have no input on that. The medium exchange becomes the standard.
This has always puzzled me. We feel within our very being that a $100 bill is worth a $100. But it is only worth that because someone said it is. And we except that. As with any form of currency. It is an abstract and contrived system.
So assume tomorrow we woke up and we found out that the economy completely failed. Every bank and financial institution was defunct, wiped out! Every working adult would be paralyzed and be sent into anarchy. And why? Well the answer would seem obvious. Our entire financial system and our currency would be rendered totally worthless.
The irony of this is that nothing in reality would have really happened. The plumber could still go and fix pipes. The farmer could still cultivate his crops as could the factory worker run his production line. A doctor could still treat his patients as could the soda vendor deliver his product.
Oh I know there are people saying "you are over simplifying this. Someone has to pay for these items and services". Why? It is only this way because of the financial system put into place and excepted. It is engraved in our brain. But if you continue to go back to the reality that "the system" is contrived and artificially applied, you would understand how we could quickly adapt to a non-currency system.
Yes there would be some people looking for different work. Any one who is employed in a currency related field. Bankers, stock brokers, and creditors and so on. But would that be so horrible?
In conclusion I agree with the other people who are now reading this and saying "this will never, ever happen". The worst part about that is it won't happen because of greed. It is estimated by some that 40% of the world's wealth is possessed and controlled by only 200 people. There are also some very wealthy people among the remaining section of the Earth's population who like the present system just fine. That is because they control a large portion of the remaining 60% of the worlds currency.
Keep in mind what I am suggesting is not a Communist or Socialist concept it is a family concept. Again as idealistic as it is, it is possible that an entire planet could work in harmony to accomplish the daily tasks needed to provide everyone with adequate needs and wants. But if it is left up to mankind it will sadly never happen.
Best wishes.
Sincerely,
-Liane Schmidt.