By:0
Date:2018-07-11
The most important need of money is need of self esteem. Money is your respect in the society or if we say more specifically, it is your credibility in the society. Whatever you buy from that piece of paper which we all know as currency is actually the credit you took from this world. That is why the bank note with a guarantee of promise, “I promise to pay the bearer a sum of xyz Rs”.
It clearly means that this xyz rs is the value of that item which you are taking as a credit on behalf of the promise that you will return it at some time in future. A very important question here may arise that whether people really do so. Do they really return whatever they buy from money and earn their money back?
Well, the answer is that if they will not do so. Ideally, they will become poorer. If someone, like an organization or government will help them it will become poorer as well, often to help the poor in its country government tries to print extra money, and as a result the value of the currency decreases with respect to other currencies and this means that whole nation has become poorer.
To understand this, just imagine what will happen to a person who only spends and don’t earn. This clearly means that he took all the credit and didn’t return it. Obviously he will become poor. Now let us see what the relevance of the bank note here is. A bank note is actually the keeper of this promise; it tries to make the promise secured by manipulating the economy of the nation.
If there are more consumers and less producers of the value then the debt on the bank or the nation will rise, because bank and government will not be able to provide enough free value to its people.
The value provided by bank is the security of the promise written on the bank note. If it will not be able to do so the debt on it will rise causing inflation in the whole economy. Any person who earns money or in other words, is able to return the credit he took from the society or the market, will also become poor in such situation of the economy, this will either decrease his productivity, or as a reaction he will increase his profit margin, thus leading to inflation, crony capitalism etc. This clearly indicates that the actual reason behind the inflation and crony capitalism is the increase in consumerism.
Let us consider example of an advertising business. Suppose some product company hire some popular personality for promoting its brand. Obviously it will pay a lot of money for this. Now if the brand does not gets as much popularity as that personality the brand may not be able to earn. This clearly indicates that when you are paying for something it is necessary that you get that value as well so that you may distribute it among your customers. It means the brand must become that much popular. So that when the customer of the brand purchases the product he also gets his share of recognition among his circle. The product company is actually sharing the brand of the personality among its customers in this whole process. If it is not able to do so the business may be called a failure. The company actually acted as a medium of distributing the respect and recognition of the personality among its customers.
Now let us look at the value of currency. A currency also holds the value of trust. So taking currency from someone without giving him any value is like taking the credit of trust. This also means that you will have to repay this trust to the issuer. Here the bank or the government (who certify the currency) respectively becomes that agency whom you will have to pay the trust back. Government expects a common citizen to follow law and order, and bank wants economic growth in form of credit interest so as you are indebted to both you will have to do so. If you don’t then bank has the right to sell the security against which you took credit. Overall you will end up being even poorer. So does this all happen automatically on its own? Well, the answer is yes, and the reason is because money is actually value of the services. Value flow is a natural process. Value is actually happiness and comfort and it may act on its own.
