Sunday, May 13, 2012
What is Money?
So, I've been wondering exactly what money is, or perhaps what it represents. I've come up with "stored work" as a start. It represents work done and future work that could be done - it buys future work. I know that it acts like a contract of value but really that value is ultimately work. So you buy products but the work done to collate, create, design, assemble, etc make up the product. Services are more straight forward of course. They are money for work.
I guess that, based on this idea, profit is where the money your given buys more of someone else's work than the amount of work you had to do to get the money in the first place.
For me the best type of work, value, wealth and profit occurs when someone does work and the outcome of the work lasts for a long long time. It actually helps someone else do their work more efficiently. It is not easily destroyed or consumed. It maintains its value. For me the perfect scenario is if I create something that someone else wants, it takes me a minute to make it and it lasts for a million years. Nobody needs buy another one. Of course that's not possible but just showing the greatest outcome possible. Making wealth is when the works done, well to a degree.
Loss, the destruction of value, of money, comes when time, or disaster or poor workmanship destroys the thing that has been worked on - or that type of work isn't needed or valuable to society anymore. The work is gone and no longer worth money. Poverty is when there is a lot of work to do and not enough capacity to do it.
If there is a problem with our system then it seems to me that all 'work' is not properly valued. Money is the only measure. I don't have a problem with work, but not all work is good. Yet the system likes it when people work, any type of work, all work. The system seems to rejoice when something breaks and it has to be made again. When something is unnecessarily super seeded. Just as long as work is done.
Humanity wants work to be long lasting but the system we has doesn't always reward it for being so.
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