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Historical development of money in Economics
Historical development of money in Economics
Evolution of money Essay
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Over the years, money has changed drastically. Since the beginning, anywhere there is civilization there has been some sort of currency, and it changes due to the advancement of people. People are willing to do more for money if there is a reward involved. Money started out as simple things such as: fur, horns, meat, things like that, and people would trade them. After that money became things like silver or gold coins. Once this became a big success people realized the value of silver and gold has and realized it was really expensive. After they realized this they made a more simpler form called, fiat money. Sacagawea named the fiat money. Fiat money has been a huge success and took a huge leap in the economy. It was cheaper to make and easier
world began to use this item as a means of currency. Leading in the production of this element
For her book, Nickel and Dimed: On (Not) Getting by in America, Barbara Ehrenreich, a middle-aged female investigative journalist, assumed the undercover position of a newly divorced housewife returning to work after several years of unemployment. The premise for Ehrenreich to go undercover in this way was due to her belief that a single mother returning to work after years of being on welfare would have a difficult time providing for her family on a low or minimum wage. Her cover story was the closest she could get to that of a welfare mother since she had no children and was not on welfare. During the time she developed the idea for the book, “roughly four million women about to be booted into the labor market by welfare reform” were going to have to survive on a $6 or $7 an hour wage; the wage of the inexperienced and uneducated. This paper will discuss Ehrenreich's approach to the research, her discoveries, and the economic assumptions we can make based on the information presented in her book.
Barbara Ehrenreich’s book “Nickle and Dimed” she explored a life as having a low wage earning by working several jobs in numerous of different places as she tempted to live off the wage she earned. Even though she had a doctorate in science she is known as a journalist and as well as muckraker. In the novel she states her journey on how she pondered how someone unskilled, uneducated, and untrained workers can survive with the minimum wage incomes. Barbara gave us real life experiences of her personal life as she had witnessed firsthand as her loved ones struggled living minimum wage jobs to provide enough utilities for her family.
To fully understand Bitcoin, you need to have a basic understanding about how traditional currency works. Currencies like the dollar bill and the Euro are backed by a central bank. This central bank is controlled by one or more countries. The dollar, for instance, is backed by the US government through the Federal Reserve System. The only reason people have faith in the US dollar is because it is backed by the US government. Consumers therefore, have faith not in the physical currency itself, but in the government behind it. The only value in currency is the faith we place in the country controlling it. The controlling government has complete control over the currency it backs. For example, every dollar bill is marked with a specific ID number. This allows the government the ability to track the bank note through the global market...
That is simple. In the Colonies, we issue our own money. It is called Colonial Scrip. We issue it in proper proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers. In this manner, creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay to no one. (Binderup 1941)
The Gilded Age is a period of volatile development in American trade and cultivation. Gilded Age government were conquered by fraud, as representatives took inducements and content their groups with posh management jobs. The three major problem happened in during Glided age was Currency Reform, Social Darwinism and political corruption. The Currency Reform is one of the most significant problem commerce with finances was that of Currency Reform. However the corruption was so common during glided age. However because of that City government administrated by dishonest machines like” New York's Tammany Hall”. The simple problem reposes about the idea that the quantity of money in flow controls its worth. However, it shared by that knowledge about l that money that was not supported by solid funds.
Money has evolved with the times and is a reflection of the progress of man. Early money was itself a physical commodity, grain, gold or silver. During the vital stage, more symbolic forms of money such as certificates of deposit, bank notes, checks, letters of credit, bonds and other forms of negotiable securities came into prominence. Social development transformed money in to a trust, “In God We Trust' it says on the back of the ten-dollar bill.” (The Ascent of Money, 27) Today money is faith in the person paying us and belief in the person issuing the money he uses or the institution that honors his money. This trust has no end it can be extended to a greater number of individuals.
But perhaps the innovation most constructive and destructive throughout western history, depending on whose hands it was in, was the use of paper money as a substitute for what had been used as real money in other civilizations-gold and silver. Gold and silver are still acknowledged as real money in every civilized nation as well as recognized commodities of real value in primitive societies. Paper money was introduced as a new idea to western civilization by Marco Polo in a chapter of his Travels entitled: "How the Great Khan Causes the Bark of Trees, Made into Something Like Paper, to Pass for Money All Over His Country". After reading the chapter title like that, Polo's readers probably thought the Great Khan to be the Great Con.
environmentally, how the money spreads across from place to place and the way it rotates from
Paper money is more complex. From 1900 through 1971 (with the exception of during World War I), the US dollar was backed by gold, meaning its value was legally defined by a certain weight of the metal. That ended in 1971, when Richard Nixon shocked the world by breaking the link to gold and allowing the dollar’s value to be determined by trading in the foreign exchange markets. The dollar is valuable not because it’s as good as gold, but because you can buy goods and services produced in the United States with it—and, crucially, it’s the only form the US government will accept for tax payments. Among the Federal Reserve’s many functions is allowing the issuance of just the right quantity of dollars—enough to keep the wheels of commerce well greased without slipping into a hyperinflationary crisis.
The invention of money was a major improvement in peoples’ lives. In the past, people usually had to travel all day to find the person who is willing to exchange their goods. In addition, the goods people want to exchange did not have the standard value of measurement. This led to unequal exchanges. Furthermore, it is not convenient to carry heavy goods from one place to another for an exchange. To solve these issues, money will be the only solution. Later, people tend to develop money from cowry shells to credit cards for the convenience and to improve their society.
Today, couple of monetary forms are completely upheld by gold or silver. Subsequent to most world monetary standards are fiat cash, the cash supply could increment quickly for political reasons, bringing about inflation. The
Since the beginning, money has always been a gate way to the most desirables of any human, and it has created almost a brain washing effect over all of humanity, turning people into criminals and cheats. However, this is not something that was intentional. Money was supposed to be used as a simple system to balance everything out. If someone needed eggs, and they only had tortillas, money would
There is one thing that differentiates the international business with the domestic business where it uses more than one currency in the commercial transaction. For example, if a company from British purchases some goods from a company from US, the international transaction will require for exchanging pounds and U.S. dollars which involve the foreign exchange market. In the foreign exchange market, any country that wish to do business with foreign country, the country need to convert their domestic currency into the foreign currency that they are wish to cooperate with through foreign exchange.
Money is defined by the Webster dictionary as something generally accepted as a medium of exchange, a measure of value or a means of payment (Merriam-Webster, 2016). It plays a vital role in human life. People need to buy food and many basic necessities of life which are impossible to be bought without money. That’s why there is no any doubt that money is so essential for an individual to survive each day in life. The importance of money is increasing day by day as living becomes costly. That’s why individual should use it properly and wisely. Using money doesn’t end from spending it, it is also very essential to save it for future use and plans.