The Value of the Concept of Money
This is a republish of my original post from Medium that I wanted easier access to on my blog.
When people treat this essay by its title, ‘The Value of the Concept of Money’, they would definitely like to know the origin of money or rather the evolution of money from the barter system and how the first currency was created (a more appropriate word would be invented) by King Alyattes in Lydia, now part of Turkey, in 600 B.C. But this essay does not focus on the factual importance of money but rather the philosophical importance of it and how it interacts with people and in turn influences an entire civilization(s) itself!
Taking a look at a planetary scale, money is the most important ‘element’ on this planet. It is how the day to day interactions on this planet works out or rather moves like churned butter, it is what drives human beings towards success by shedding their egos and complexes and move as part of a big machinery. A self-known sacrifice to be part of something bigger than themselves. Money creates a self-realized illusion of a utopian future with the perpetual flow of money itself, moving uniformly throughout society (the idea of attaining an individual’s life’s goals dilutes the ideology of money at the most primitive level of thinking in a man).
Now on trying to fathom the importance of money on a cosmic level, people would judge by saying that it holds no priority over science or rather by saying that science is the basis of any civilization. This remains incorrect for the most part because, in my belief, communication and cooperation remain the basis of civilization. Science can be allowed to occupy the apex of a hypothetical pyramid (given its importance) but an apex cannot exist without the base. So when we modern humans pursue science, for the most part, we forget the oil running this machinery named society is literature and more importantly commerce.
If we were to look through a historical point of view, the concept of money can be traced back to 10,000 B.C. or even 12,000 B.C. when man started to settle around large water bodies at an immense scale, thus giving rise to civilizations. Each individual had a certain function to carry out in such a manner of living, in return for a lucrative item or promise that would benefit the individual. This method of functioning is what led to the confounded success of various civilizations like the Egyptians, the Mesopotamians and the Indus Valley civilization. The concept of money provides us with certain markers that shows us what fundamentally drives us as human beings.
At this point, I would like to quote this article from The Paideia Project which says, “Money fills the will of man with material strength, which can be realized through a social mechanism — market, but money remains indifferent to what that will is aimed at. This comes from sphere of reason. (sic)”. What I have tried to understand from this is that a man’s purpose in life can span across various parameters, some like to live a life of luxury and comfort whereas others are ready to forgo such elements for a life of seeking the truth whether that be spiritual or scientific. All that remains common with these people is the will to carry out something solid or worthwhile in their lives (something that gives them a meaning or purpose), money acts a passage to these people between their reality and their purpose. It allows the good and bad side of man to exercise his own will through this passage.
The dual nature
Money can be considered as a tangible manifestation of freedom; the more you have, the more liberated you are from the constraints of basic survival, allowing you to focus on higher pursuits. However, the paradox lies in the fact that the pursuit of money often enslaves people, binding them to a cycle of labor and consumption. This contradictory nature of money, as both a liberator and an enslaver, is a testament to its complex philosophical underpinnings.
The pursuit of money has often been at the heart of human conflict and cooperation. Wars have been fought over resources (which is the tangible form of money), and civilizations have risen and fallen based on their economic prowess. Yet, money has also been the catalyst for cooperation, with people coming together for trade, leading to the exchange of culture, knowledge, and ideas.
Consciousness and commerce
In the realm of consciousness, money can be seen as a shared belief system. Its value is not intrinsic but is derived from a collective agreement among people. This makes money one of the earliest and most successful examples of a shared fictional reality, a concept that historian Yuval Noah Harari discusses in his book ‘Sapiens’. The fact that a piece of paper or a digital number can hold so much power is a testament to the strength of shared human beliefs and social constructs.
Moreover, money has a significant impact on our psychology and behavior. The concept of loss aversion, studied extensively in behavioral economics, shows that humans are more affected by the loss of money than the gain of an equivalent amount. This psychological quirk has profound implications for how economies function and how people make financial decisions.
Conclusion
In conclusion, the concept of money goes far beyond being a mere medium of exchange. It is a philosophical construct that reflects our values, shapes our behaviors, influences our relationships, and even defines civilizations. Understanding the philosophical importance of money can provide us with a deeper insight into human nature and the societies we have built. It allows us to see money not just as a tool for economic transactions, but as a mirror reflecting the complex tapestry of human desires, fears, and aspirations.