Money Isn’t Real

Money’s role in life is presented every single day, even if one does not realize it. It does not matter if the money being used is a credit card, a dollar bill, a coin, or a Fei. The value of each form of currency is set by the economy. In modern day society, people offer a specific amount of “money” which in essence is just a piece of paper for a service. People decide to dedicate 40, 50, and in some cases 60 hours a week just to receive paper put into their bank account. The thing is that no one needs to see the money they make. They are confident that the employer is transferring the money to their accounts. According to the NPR broadcast, “money is fiction.” It seems to be money is not real thing. Money is modern day society is changing more and more everyday.

The broadcast by NPR reports that money is not necessarily a real thing. It is just paper with thoughtful meaning behind it. People’s belief give money the meaning. Because of the fact that money is liquified, it is impossible to count every piece of money in the world. People are able to transfer money to any account or take out physical cash whenever they please with the use of an ATM or a bank. Titled, “Yap in the South Pacific”, this book talks about how the Yap used currency the way modern society uses banks. Similar to how people put money in the bank and take it back when it is needed; the Yap would trade ownership of large stone sculptures. The sculptures would be used for bigger purchases and opportunities. The Yaps believed they had currency if they had a stone. Similar to the Yaps, we believe we have currency because of the number next to our name at the bank. “The Island of Stone Money”, a book by Milton Friedman, talks about how forms of currency have changed throughout the years. One point in history Milton makes a point about how the French were scared that the U.S would no longer use gold as a currency. Because of this, the Federal Reserve Bank began to take dollars for gold. This began the rise of the U.S trading with more countries and accepting different types of currency.

In 1990, Brazil was in a very deep hole when it comes to inflation. It became so bad that inflation rates were increasing up to 80% a month. To put that in perspective a pair of shoes that cost $25 during the first week of the month, would cost $45 dollars the first week of the next month, and it kept going. The Brazilians was not able to keep up with the constant rise of inflation. The value of their currency began to drop lower and lower everyday. Brazil brought in four economic friends who created a their own currency. The currency they made was called URVs. This currency was virtual just like how banks transfer money. This means there was zero of their money actually printed. People began to get paid in URVs. They were able to pay taxes as well as paying for groceries. The inflation was put to an end by creating a new form of money. In a way, the entire country’s debt was cleared away by making fake money.

In today’s world, the majority of the world’s currency is online. We have created new ways of exchanging it. For example, a lot of people across the world invest in “Crypto” which is short for cryptocurrency. An article by Anne Renaut titled “The Bubble Burt on E-currency Bitcoin” speaks about Bitcoin can drop so fast. In a span of three days, Bitcoin’s worth decreased from $266 to $54. This is a problem because of how easy it is to fluctuate. The value of money is always changing because of how many different types of currency there are. It rises and falls as the stock market rises and falls. New money is being printed every single day, which does not allow for a sole type of currency. The articles and NPR broadcast all proclaimed that money is a physical object, that has mental meaning. No dollar is ever worth the same. People put a meaning behind the dollar if it is physical or mental.

References

Friedman, Milton. “The Island of Stone Money.” The Island of Stone Money(1991): 3-7. Web. 10 Sept. 2016.

NPR. (2020, September 8). What is money? Jacob Goldstein’s book explains “shared fiction.” NPR. https://www.npr.org/2020/09/08/910586930/what-is-money-jacob-goldsteins-book-explains-shared-fiction

Renaut, A. (n.d.). “The Bubble Burt on E-Currency Bitcoin. https://doi.org/10.1057/9781137382559.0014

Joffe-Walt, C. (2010, October 4). How fake money saved Brazil. NPR. https://www.npr.org/sections/money/2010/10/04/130329523/how-fake-money-saved-brazil