A Kid’s Game

I have worked at a daycare for a few years now. I have noticed that a popular game to play among the kids is restaurant or store. They make up fictional products or food to sell to their friends, and in return, their friends pay them with fake money. To them, the idea of money is simple- you want something, you buy it, and you’re done. As I researched the island of Yap and Brazil’s economy, the idea of money became less simple. The question of how real and fake money truly is, comes into play.

A basic idea kids follow is playing a game by the rules. If someone is cheating or simply not listening, all hell breaks loose. This basic idea is inherited by all humans within a society. This notion is seen in the island of Yap. In NPR’s podcast, “The Island of Stone Money”, Goldstein and Kestenbaum explain the currency of the island. They explain that instead of paying currency for a large payment, they use Fei. Fei is a larger-than-life stone wheel that holds tremendous value within the Yap community. Everyone on the island knows whose Fei is who’s, regardless of placement on the island. Much like children, everyone on the island plays the “game” by the rules. However, in Milton Friedman’s, “The Island of Stone Money”, he explains how the Germans did not play by the rules. Germany had gained ownership of the island and wanted the people of Yap to fix their roads. When the island of Yap did not concede, the Germans went to the island and put big black Xs on their Fei. The Yap were in shock, the black markings on their Fei had made the Fei lose all its value. Not until the Yaps fixed their roads, did the Germans removed the Xs from the Fei. Although the Yaps reaction might seem childish, this is how many people view the value of their own money.

What happens if the rules of a game are messed up? Usually, this means that things for the players goes arise. A similar thing happened in Brazil’s to its economy. In the Planet Money podcast episode, “The Invention of Money”, it is explained that Brazil had made bad investments and was producing too much money. The value of money itself was changing every day and the people couldn’t keep up. The Planet Money podcast used firsthand accounts from Brazilians to explain what life was like during this time. The Brazilians recount stories of grocery prices going up by the day and how paychecks lost value every minute they were not cashed. The government tried to reconcile the economy by implementing a price freeze. However, the country’s store owners took it upon their selves to hoard the goods and wait out the freeze. There was not enough food for the public to buy and feed their family with. With the country’s economy being a mess and public outrage, the country’s government finally had to ask for help.

What happens if someone does not understand the rules of a game? Usually, a friend will explain and try to help out. Similarly, Brazil finally decided it was time to ask for help with the economy. In the article, “How an economist’s fake money saved his country from high and uncontrolled inflation by the International Investor”, explains how four college students answered Brazil’s call. Although hesitant at first, the college students decided to implement their own plan to help the Brazilian economy. The friends convinced the country to use fake money to pay for goods and services. They also instructed the country to stop producing so much unnecessary money. Under the student’s advisement, the government went ahead with the new plan. The public even got their paychecks converted into this new money. The public was able to know the value of their new money by checking the newspaper. The newspaper would change the value of the money every day to combat inflation. The public started to use the new system and the economy started to stabilize. Once the economy was stable, the fake money was no longer needed and could be forgotten. The original money system in the country had been restored. Making the Brazilians believe that the fake money had value, is what saved Brazil’s economy.

Brazil’s economy has been stable for years. So much so that many people buy goods in installments. At many stores Brazilians can buy a simple shirt and pay for it in six payments. However, the 2020 Covid-19 pandemic shook many countries, including Brazil. In the article, “Counterfeit Money Trade Thieves in Brazil Amid Pandemic by Insight Crime”, Norris explains the illegal acts involving the Brazilian economy during the pandemic. The police had discovered that multiple groups were selling fake bank notes. The groups were deceiving the public with promises of making them rich since many of them had lost their jobs. The police discovered that big rings were counterfeiting millions of dollars from the Brazilian economy. It was reported that the act counterfeiting money is on the rise within the country. It is a shame to see that people are trying to destroy a country’s economy that took so long to fix.

In the end, a kid’s version of money is not so different from ours. The Yap community holds value in big stone wheels and the Brazilians put all their faith into a new currency that was just fake money disguised. Money isn’t real. Money is just an idea. Money is fake. We as a society could put value to anything and decide to use that as the nation’s currency. The government dictates what money is and we just blindly follow the rules. We are all just kids following the rules of a game.

References

Friedman, Milton. “The Island of Stone Money.” The Island of Stone Money(1991): 3-7. Web. 22 Oct. 2023

Glass, Ira, Chana Joffe-Walt, Alex Blumberg, and Dave Kestenbaum. “423: The Invention of Money.” This American Life. Prod. Planet Money. 7 Jan. 2011. This American Life. Web. 22 Oct. 2023.

Jurado, Eric. “How an economist’s fake money saved his country from high and uncontrolled inflation”. The International Investor. The International Investor, 5 Jul. 2022. Web. 22 Oct. 2023

Joffe-Walt, Chana. “How Fake Money Saved Brazil.” NPR. NPR, 4 Oct. 2010. Web. 22 Oct. 2023.

Norris, Issac. “Counterfeit Money Trade Thrives in Brazil Amid Pandemic”. Insight Crime. Insight Crime, 7 Jan. 2021. Web. 22 Oct. 2023