My
brother-in-law who is a Senior Civil Engineer wrote this question in a WhatsApp chat:
"How to
survive without money? It is money, and money and a money world.
Why is the world made like this?"
Just two days ago I was robbed by a snatch thief of my money, smart phone, two bank saving books, ATM cards, LRT (Light Rail Transit) travel card, house keys, my wife's identity card. The snatch thief must be very desperate of money to survive. I just gave all of them to him, after which I blocked all my bank accounts, smart phone, LRT card, and made a police report. My wife got a new replacement identity card the next day.
I think it is wrong to say that money is everything and we cannot survive without it. It gives the impression that money is the root of all evils. Let me give my thoughts on this.
Sufficient money is required just to live basically a simple life, in fact, a very comfortably without using money to acquire all sorts of properties and investments that only burden our lives trying hard to upkeep and maintain them for at maximum 100 years, only forced to leave all of them behind along with our properties and investments into the grave.
In 1
Timothy 6:10 in the Bible it clearly says: For the love of money is the
root of all evil: which while some coveted after, they have erred from the
faith and pierced themselves through with many sorrows.
The
Bible never says money is the root of all evils, but it says that ‘the love of
it’ is the root of all evils. There is a very big difference between
needing money for basic subsistence and the love of money beyond basic needs.
Money
cannot buy love, health or prevent us from disease, illnesses and death.
In
fact, in ancient times, they did not even use money at all. They used the
barter system to exchange what they needed only, such as exchanging a cow, a
donkey or goats for food grains. That was not evil or the root of all evils? It
was just for basic living
I think
it would be better to say that the root of all evil is not money itself but
people's need for money, which they could use to improve their basic
livelihood, but not greed of money to increase one's status, or jealousy over
losing in the status game to others.
Money
can be used for charitable purposes to help those in need of basic requirements
for food, clothes, shelter and medicines like what Mother Teresa did in
Calcutta who finally won her the prestigious Nobel Prize for Peace. She used
her money from her Nobel Prize for charity work to help the poorest among the
poor instead. But others can use money to exploit people, harm others, or
divide communities.
History
of Money:
Since
we are talking about money at this moment I might as well write something
further about money, its history and how it compares with other equivalent
commodities.
The
invention of money is indeed a fascinating milestone in human history. I
first came to know about the barter system when I was a young boy in
school.
Later I read economics and sociology, surprisingly these subjects too I needed to learn as part of my postgraduate course in nutrition at the University of London. Let me share with you what I learnt about economics in London
When
Was Money Introduced?
The
concept of money evolved over thousands of years and has no single point of
"invention." Here's an approximate timeline of its development:
Barter
System (Prehistoric Times):
Before
money, societies relied on barter—direct exchange of goods and services. For
example, one person might trade wheat for livestock. Then came commodity money
(~3000 BCE): Early forms of money were commodities like cattle, grains, or
precious metals. In Mesopotamia, grain and silver were used as units of
account. Later man used metal coins (~1000 BCE): The first standardized coins
appeared in the ancient kingdom of Lydia (modern-day Turkey) around 600 BCE.
These coins were made from a naturally occurring gold-silver alloy called electrum.
Following that, paper money (~700 CE) was introduced. The Chinese
Tang Dynasty began using "promissory notes," and by the Song Dynasty
(~11th century), paper money was widely used.
However,
modern money was introduced in the 17th–18th Century. With the rise
of banks and the issuance of banknotes, money evolved into its modern forms,
eventually leading to fiat currency (money with no intrinsic value but
established by government decree).
Was
money invented to replace barter? The answer is, money was introduced
largely to address the limitations of the barter system. The barter system,
while functional in small or simple economies, posed several challenges such
as:
Double
Coincidence of Wants: Barter required both parties to have something the other
wanted at the same time.
Indivisibility:
Some goods, like livestock, were difficult to divide for smaller transactions.
Lack of
Standard Value: It was hard to measure the value of goods consistently (e.g.,
how many sacks of grain equals a goat?).
Storage
Issues: Perishable goods like food could not be stored as a reliable medium of
exchange.
Money
simplified trade by acting as a medium of exchange (avoiding the need for
direct bartering). It is a unit of account (providing a standard way to measure
value). Money has a store of value (retaining value over time and enabling
savings).
Why Was
Money Important ? Money revolutionized economies by enabling large-scale trade
and specialization of labour. It supports the development of complex societies
and market economies. Money acts as a foundation for taxation, governance, and
wealth accumulation.
In
essence, the introduction of money was a response to the growing complexity of
human societies and their trade networks, facilitating economic growth and
innovation.
Why
Were Early Coins Not Made of Pure Gold?
First,
gold has durability and practicality. Pure gold is soft and malleable, making
it impractical for coins that would endure constant handling. By alloying gold
with silver or copper, the coins became harder and more resistant to wear.
Gold also has cost efficiency. This means gold was (and still is) extremely
valuable. Mixing gold with silver or other metals allowed governments to
produce more coins and facilitate trade without exhausting their gold reserves.
There is also standardization. Ancient economies used alloys like electrum because
it was naturally available in some regions, simplifying coin production without
requiring extensive refining technology.
Gold
and the Economy:
Gold
has been a cornerstone of wealth and economic systems for millennia. Here’s
why:
Gold as
a Reserve Asset: Many countries hold gold in reserves as a hedge against
economic instability. Historically, the gold standard (where currencies were
directly tied to a fixed quantity of gold) provided stability. While most
nations abandoned the gold standard by the mid-20th century, gold reserves
still reflect a nation's financial security and credibility.
Cultural
and Practical Value: Gold’s rarity, beauty, resistance to corrosion, and ease
of shaping made it ideal for use in coins, jewellery, and even electronics
today.
Universal
Acceptance: Unlike fiat currency, gold is universally recognized and valued,
making it a preferred store of wealth in uncertain times.
Why Do
Gold Prices Fluctuate?
Gold
prices are influenced by several interconnected factors:
Supply
and Demand:
Firstly,
the supply of gold is limited, as mining is costly and slow. Secondly, the
demand fluctuates with trends in jewellery, technology, and investment.
Gold
has economic stability. Gold is often seen as a "safe haven" during
economic turmoil. When markets are unstable (e.g., inflation, currency
devaluation, geopolitical tensions), investors flock to gold, driving up its
price. When interest rates are high, investments like bonds and savings
accounts become more attractive than gold (which doesn’t yield interest). This
can lower demand and reduce prices. Conversely, lower interest rates often make
gold more appealing.
Currency
Strength:
Gold is
priced in US dollars internationally. When the US dollar strengthens, gold
becomes more expensive for buyers in other currencies, reducing demand and
lowering prices.
Inflation:
Gold is
often used as a hedge against inflation. When inflation rises, gold prices tend
to increase because its intrinsic value remains stable.
Global
Events:
Political
or economic crises, such as wars or financial collapses, boost gold's appeal,
increasing demand and raising prices.
Are
There Commodities More Valuable Than Gold?
Yes,
several commodities are more valuable than gold on a per-unit basis, although
they may not serve the same economic role:
First,
we have platinum and rhodium. These metals are rarer than gold and often more
expensive due to their use in industries like automotive (catalytic converters)
and electronics. Then there are also diamonds. While valuable, their
pricing is highly controlled by the diamond industry, making them less
universally "liquid" than gold.
Next,
we also have rare Earth elements (e.g., Scandium, Terbium). These elements are
very expensive, as they are essential for advanced technologies like
smartphones and green energy, these are in high demand but have specialized
applications.
Then we
can also consider antimatter (hypothetical). Theoretically, antimatter is the
most expensive substance on Earth, costing billions per gram due to the
complexity of its production.
However,
gold's universal recognition and liquidity make it unparalleled as a global
store of value.
Closing
Thoughts
Gold
has stood the test of time due to its unique combination of rarity, stability,
and cultural significance. Its price fluctuations reflect its role in balancing
economic confidence, technological demands, and human psychology.
Hence, money is not the root of all evils, but a basic commodity for our basic temporary existence here in this world till we journey on into the next - where probably enrichment and wealth are entirely different. What we get here, we may not get there in reversed karma. It is the love of excess money over basic comfort in life that is the root of all evils, not money itself. The excess of them goes into our graves as the soul flies away empty handed.
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