Money is an essential ingredient for our everyday lives. It is how we support ourselves and live a healthy, prosperous life. In addition, money has always had a major impact on our society as well, even though the value of the dollar is constantly changing. In these articles, the authors discuss how money affects our society and the impact it makes.
In, "Francisco's money speech" by Ayn Rand, it was discussed that while money is primarily what we use to purchase the goods we want, sometimes money is also used to steal or “loot” goods from others. An example of this type of behavior includes after a hurricane when businesses are flooded or have broken windows and people steal their products. Also, while it does not seem to be as visible, there are cases where someone working at a company steals money from the business by falsifying invoices and keeping the money for themselves. Another example is during war time when businesses are bombed and then people come through and take whatever is around because no one is securing the stores. Although in the United States, we do not see the war aspect, we do experience individuals in our society stealing products from stores and money from companies. And while some individuals obtain their money through fraud or other unethical ways, it was also discussed that if you obtain your money through these means, you will not be as satisfied as ethically earning or buying the goods. It is stated that,
“Then all the things you buy will become, not a tribute to you, but a reproach; not an achievement, but a reminder of shame” (Rand, 2020, p. 1).
This quote expresses the idea of “looting” your money and the guilt you will carry is not worth the free money. I agree with Rand about how the idea of the way an individual obtains their money, shows their true ethics.
In Chapter two of Bylund’s book, he continues the idea of how working with a voluntary exchange exhibits the value of a trade. Bylund, (Bylund, 2016, p. 16) uses the analogy of trading an apple for a coke and that each holds a different value to the consumers. For the trade to work, both individuals must agree that their items hold a value and that depending on the person, one may have more value than what they have for their current items. Interestingly, the term “medium of exchange” was introduced in this chapter because there is not a certain price on trade items. The price often depends on what an individual’s need is at that moment, what is going to be of higher value to them, and then what they are willing to pay or trade for the product. Even though this concept of trade can work perfectly, in our society it is rarely used. I imagine that this is like a garage sale and for someone to find another individual who wants their exact product and is willing to trade or pay something for it is difficult. Another example was when I wanted to sell the tires off my car for new tires. I would have liked to have traded my old tires for new ones, but the tire company did not want my old tires, so I had to find a person to buy them. It was stated that,
“In contrast, with the price information just given for a non-money barter economy, Adele would have to find the people with matching wants for each of a potentially long series of exchanges in order to get what she wants...” (Bylund, 2016, p. 19).
This quote expresses the fact that it would be nearly impossible to find someone who wants to equally trade. I agree with the fact that to find someone to barter with who wants exactly what one person has available and also has something valuable to give in exchange, is like finding the double-coincidence of wants. However, I do believe that it is possible to trade this way and the medium of exchange can help individuals get the products or goods they want at a reasonable trade or cost.
In the last article, Tamny discusses the post-war value of money and how over the years the value of the dollar has changed. It was discussed that when the value of the dollar stays the same, or is stable, it has a higher impact on the society. Tamny uses the example of the war in Germany and talked about how the term “barter” became a means of obtaining products when the value of money was low during this time and the idea that the government was taking away from their people because they would not help stabilize the value of the dollar. Money was tight for individuals after the war, most people had little to no money because they were not able to work during the war, and the government did not support them as they should have which forced people to have to barter in the streets. It was stated that,
“Stable money as a measure of value doesn’t ensure that every trade will yield better or equal to what was produced, nor does it ensure that every investment will yield positive returns — but it does ensure that we won’t lose value for using money to buy, sell, lend, borrow, or buy and sell shares” (Tamny, 2022, p. 35).
This quote expresses the idea that our money needs stability, with the prices fluctuating, and how hard it is for individuals to price their goods correctly without the potential of losing money when the market is unstable. In my opinion, I agree with Tamny on all points. After wars, people are in need and some individuals take advantage of that. Also, it is hard to predict what goods should be sold for what price when the value of money is always changing. If we had a stable price, it would be easier to make the most out of each dollar. Unfortunately, we see this in our society today, with inflation and the value of the dollar is always changing.
Overall, these articles focused on the value of money, the value of products and how pricing is important to ensure people can get what they want or need. Whether it was the dollar or the good, each item holds a higher value to some than others. As explained in the examples, we see these ideas of fraud, medium exchange, and the importance of price stability in our society today.
Rand, A. (2020, April 13). "Francisco's money speech" by Ayn Rand. Capitalism Magazine. Retrieved February 24, 2023, from https://www.capitalismmagazine.com/2002/08/franciscos-money-speech/Links to an external site.
Bylund, P. L. (2016). Chapter 2: The Price Is Right. In Seen, the unseen, and the unrealized: How regulations affect our everyday lives (pp. 15–26). essay, Lexington Books.
Tamny, J. (2022). Chapter 2: The Meaning of Stable Money. In The money confusion: How illiteracy about currencies and inflation sets the stage for the Crypto Revolution (pp. 29–41). essay, All Seasons Press.
