Value of money?

Question

In essence, isn't it worthless? I mean, it's just paper. So how did people get to using paper money, and not coins? And, if you take away it's accepted worth, wouldn't a penny be worth more than a dollar, because copper must surely be more valuable than paper?

Answer 1

take one step further, isn't the value placed on nickel, copper arbitrary as well? they are just atoms, not much different from iron or carbon.

then expand on that about categorical thinking. this, this, and that are all quite arbitrary. you exchange paper money to buy clothes, but the value of clothing is also arbitrary. what value, judgment, amount is also arbitrary. so where does that leave you, the person, the measurer of all things?

Answer 2

So you think that money is the root of all evil? . . . Have you ever asked what is the root of money? Money is a tool of exchange, which can’t exist unless there are goods produced and men able to produce them. Money is the material shape of the principle that men who wish to deal with one another must deal by trade and give value for value. Money is not the tool of the moochers, who claim your product by tears, or of the looters, who take it from you by force. Money is made possible only by the men who produce. Is this what you consider evil?

When you accept money in payment for your effort, you do so only on the conviction that you will exchange it for the product of the effort of others. It is not the moochers or the looters who give value to money. Not an ocean of tears nor all the guns in the world can transform those pieces of paper in your wallet into the bread you will need to survive tomorrow. Those pieces of paper, which should have been gold, are a token of honor—your claim upon the energy of the men who produce. Your wallet is your statement of hope that somewhere in the world around you there are men who will not default on that moral principle which is the root of money. Is this what you consider evil?

Have you ever looked for the root of production? Take a look at an electric generator and dare tell yourself that it was created by the muscular effort of unthinking brutes. Try to grow a seed of wheat without the knowledge left to you by men who had to discover it for the first time. Try to obtain your food by means of nothing but physical motions—and you’ll learn that man’s mind is the root of all the goods produced and of all the wealth that has ever existed on earth.

But you say that money is made by the strong at the expense of the weak? What strength do you mean? It is not the strength of guns or muscles. Wealth is the product of man’s capacity to think. Then is money made by the man who invents a motor at the expense of those who did not invent it? Is money made by the intelligent at the expense of the fools? By the able at the expense of the incompetent? By the ambitious at the expense of the lazy? Money is made—before it can be looted or mooched—made by the effort of every honest man, each to the extent of his ability. An honest man is one who knows that he can’t consume more than he has produced.

"The Meaning of Money,” For the New Intellectual, 88 - Ayn Rand

Answer 3

Yes, it is worthless now, except insofar as people will give you goods and work for it. Paper money originates as a legal contract - it stated on it that it was a note that could be exchanged on demand for a specific amount of gold. Better than coins, because you can represent a large amount of heavy metal with a small portable piece of paper. Then we somehow arbitrarily decided that the notes would no longer be guaranteed to be worth gold. (Read about this transition, it's extremely interesting and relevant) If you take away the convention that it's "worth something" then yes, metal coins are worth more.

The US now restricts the export and melting of US pennies because there is profit in it - the metal in a penny is worth more, on the global market, than the face value of one cent.

Answer 4

It is better that we use paper instead of just valuable metals - that way currency doesn't have to override value, they can coexist.  (I mean, imagine if we were only using gold coins and gems for currency!)  And it's true that money is worthless without the value that we humans assign to it.  It is interesting to think about, but still.  The point of currency is mutual consent.  It's actually kind of a nice system.  Maybe there's a better one out there.  Who knows.

Answer 5

if you have a million penny...it would cause you a bone...to carry it all....don't you think...pleasure in all things are more expensive... so carry less and you'll  enjoy everything...and having the pleasure of it and enjoying it sure ....it is much worth than the coins.....

Answer 6

I am not sure whether you are seriously asking this question  ,under Philosophy section. There is a non philosophical answer to this. First ,  that.

Governments are not run by fools. The cost of a coin`s metal content will always be worth less than the  value of the coin itself.. However , as times pass by and demands for certain types of meatl ( copper) goes up people would start to collect coins , melt them and use the free metal. This happens. At those times , the governments switch to  cheaper metals or combination of metals.

For higher denominations one has to have only paper notes. They are all called promisery notes... that is the governments promise to pay the bearer that much value for the notes. .

In your great grand mother`s time , may be , she could buy a loaf of bread for one cent. Now , if you have to pay , in cents , you pay 340 cents! Can you carry about 5000 cents for an evening purchase of $ 50 worth things?  

So , comes along , the paper money. But these paper moneys of all sane governments are backed by solid gold reserve , in order to preserve the value of those monies.

On the philosophical side.... yes, money is worthless and has limited contribution to happiness.

Answer 7

Everything in life has a value, even if that value equates to 0.  Everything you want to do, or not do "costs" us something.  Example - If you want to go to college to better yourself, in hopes of getting a great job and career -  it will cost you not only money for tuition and books, it will cost you time.  Time that you must devote to physically attending class, and studying.  Time must be worth something in your life.  

Also, let's say you get a job in New York, it is a great opportunity filled with potential and promise. So, you pick up your life and move across the states to NY for a career.  The physical move will cost you money, in which leads to more time spent away from your family (parents, brothers, sisters, nieces, nephews, etc. )  which also costs something in the long run, as you lose time with those you love.  

So, every decision we make in our lives costs us something.  

As far as the true value of money?  That is also a perception.  Many people view the actual dollar amount in their bank account as being successful.  Others feel a need to buy the latest and greatest things out that will display success in their lives.  At the end of the day, things that cost money, are just that, things.  As they say, money cannot buy us happiness.  Money can help a lot of things, but it can't save us.  Wouldn't you give "X" amount of dollars to spend 1 more minute with someone you loved and lost?  YES! Which proves we need to focus more on the value of our relationships than the value of our assets.  

I am at a point now where I tell people (those who don't know one single thing about me) that I am a self made millionaire.  I say this because my life now is more rich and abundant than I ever thought possible.  It is not rich and abundant because I have such a successful career, or a new fancy car, or a s**y and stylish pair of those Manolo Blahniks!  It is rich and abundant because I found my own value and self worth that has always been inside me.  Yes, there are things that are not perfect in my life, but I don't dwell on that.  I appreciate all the wonderful things I have been given, and worked hard to obtain. I appreciate all this time I have been given with my family.  I know I have a special gift of seeing and understanding people.  And I love to make someone's day just because I took a moment out of my day to say hello or smile.  

Thanks for reading!

Answer 8

The value of money is speculative. And it depends on the governments resources to back up the paper claim. Also the world economy in relation to your own country's economy.

These days pennies aren't made of copper any more. Other wise it would cost about two cents to make a pennie! It's an alloy of metals with copper to give it that copper sheen.

As for the real value of money? Well that all depends on where you are. Money is relative my friend. If you have nothing in your pockets and going hungry then five bucks is a lot of money, it's more valuable than one would think. However if you have a full stomach and five hundred dollars in your pockets then five bucks isn't all that much now is it?

So you wouldn't miss five bucks at all if you handed it over to a penniless hobo in search of a meal.

Answer 9

Yes. It's completely worthless. Society puts inherent value in objects to make this wretched gag we call life worthwhile.

Go live in the moment and forget about money

Answer 10

Is your question even real?  I mean it exists on a computer screen, but it's really just an illusion, isn't it?  The moment I press a button the question disappears and something new, some new illusion, pops up.

Answer 11

Paper money came about because for two reasons . 1 it is easier to haul around paper money then large amounts of heavy gold coins . 2 to create a fiat money supply using a fractional supply system .