Money
The dictionary defines money as an item or paper that is accepted as payment on debts or to purchase something. An...READ MORE
The dictionary defines money as an item or paper that is accepted as payment on debts or to purchase something. An average person asked to think about money will likely focus on how much he or she has in a pocket, purse or bank account. But an economist will go much deeper and use abbreviations, such as M1, which is the total amount of coins and bills plus the amount of money in checking accounts. People started using money because the old way – bartering items of value – was not very efficient. English economist William Stanley Jevons summarized the four functions of money in a couplet: “Money’s a matter of functions four, a medium, a measure, a standard, a store.” The use of currency (coins and paper) also enabled capitalists to organize and make money by allowing customers to postpone paying for something on credit. Americans work to make money so they can do ordinary things, such as buy clothes, secure housing, obtain food and build wealth. There are disparities in how wealth is distributed, with most people eager to increase their wealth. And, human nature being what it is, some people take shortcuts and create fake money. Today, that is in the form of counterfeit bills, but it can be traced back many years to the days of the first coins.
