The Yin and Yang of Money: The Functions and Drawbacks in Modern Economies
Money, the lifeblood of modern economies, plays a pivotal role in facilitating trade, investment, and economic growth. It serves as a powerful tool with its multiple functions, but like any tool, it comes with its drawbacks. In this blog post, we explore the dual nature of money, highlighting its functions and examining the challenges it poses in our pursuit of a prosperous and equitable society.
The Functions of Money:
1 - Medium of Exchange: Money acts as the grease that lubricates the wheels of trade, eliminating the need for cumbersome bartering and promoting efficient transactions. It simplifies the exchange of goods and services, fostering economic cooperation and specialization.
Example: A farmer can sell their crops for money and then use the money to purchase tools from a blacksmith, without engaging in direct exchange.
2 - Unit of Account: With money as a standardized unit of measurement, individuals and businesses can compare the value of goods, services, and assets. It offers a common language for pricing and valuing commodities.
Example: Prices displayed in a store reflect the value of products in monetary terms, aiding customers in making informed choices.
3 - Store of Value: Money provides a reliable store of wealth, enabling individuals to save and transfer resources across time. It preserves value and fosters economic stability.
Example: Saving money in a bank account allows individuals to accumulate funds for future needs or investments.
4 - Standard of Deferred Payment: In contractual agreements and credit transactions, money serves as a reliable standard for deferred payment, ensuring predictability and stability.
Example: Loans are repaid in the same monetary unit, guaranteeing clarity in financial agreements.
5 - Measure of Wealth: Money acts as a measure of wealth, reflecting the accumulated value of assets and financial holdings.
Example: An individual's net worth is calculated by adding up the value of their monetary assets and investments.
The Drawbacks of Money:
Inflation and Loss of Purchasing Power: Over time, the value of money can decrease due to inflation, leading to a reduction in its purchasing power.
Economic Inequality: The accumulation of wealth through money can widen economic disparities, creating inequalities in society.
Financial Crises: Relying on complex financial systems and money-driven markets can lead to financial crises and economic downturns.
Dependence on Financial Institutions: The functioning of money heavily depends on the stability and trustworthiness of financial institutions like banks.
Black Markets and Illicit Activities: The anonymity of cash transactions can facilitate illegal activities and transactions on the black market.
Environmental Impact: Money-driven pursuits can lead to environmental degradation and unsustainable consumption.
Focus on Materialism: The pursuit of monetary gain can foster materialism and consumerism, overshadowing social and environmental concerns.
Lack of Inclusivity: Individuals without access to formal financial services may face challenges in participating fully in the economy.
Debt Burden: Excessive borrowing can lead to overwhelming debt burdens for individuals and governments.
Ethical Concerns: The pervasive influence of money raises ethical considerations in business and decision-making.
Money, a double-edged sword, holds tremendous potential to drive economic progress and prosperity, but it also poses challenges that demand careful consideration and ethical stewardship. By understanding its functions and drawbacks, we can harness the power of money to create a more equitable and sustainable society. Striving for a balanced approach, we can shape a world where the functions of money serve as a force for good, while mitigating its drawbacks to foster a brighter future for all.
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College Students and Consumer Culture
Electronics
1. Toshiba laptop with charger - want
2. Wireless mouse - want
3. DVD player - want
4. CD player - want
5. Smart Television - want
6. iPhone 6 with chargers - need
7. iPhone 4 with chargers – want (now; it’s my old phone)
8. iPod - want
9. USB portable charger - want
10. Batteries (AA, AAA, C, and D) - want
11. Remote controls - want
12. Blue earbuds - want
13. 2 Canon camera kits (with stands and external lights) - want
School Supplies (in total)
1. Three-in-one Solo Briefcase/Backpack - need
2. 5 bookbags – want
3. 13 notebooks - need
4. 20 page protectors - need
5. 4 packs of lined paper - want
6. 50 pens (roughly) – need (but not that many)
7. 25 pencils (roughly) – need (but not that many)
8. TI-84 Calculator - need
9. 100+ books, magazines, textbooks, bibles - need
10. 4 binders - need
11. 10 folders - need
12. Post-Its and notecards – want
13. Highlighters, colored pencils – want
Clothing and Accessories
1. 10 sweaters and long-sleeve shirts – need (but not that many)
2. 10 pairs of pants [lol “pairs” - because on “pair” of pants is technically one item, but it’s also a pair haha … ok let’s continue] – need (but not that many)
3. 100 shirts (roughly) – need (but not that many)
4. 10 suits – need (but not that many)
5. 5 scarfs – want
6. Wallet - want
7. 4 bracelets - want
8. 4 necklaces – 1 is a need (personal), the other 3 are wants
9. 4 watches - want
10. 20 hats (incl. beanies, snapbacks, buckets) – want
11. 12 belts – need (but not that many)
12. 10 pairs of shoes – need (but not that many)
13. A lotta’ underwear – need (but not that many)
14. 25 pairs of socks - want
15. My glasses? (with a case, cleaner and wipes) – need (without contacts)
16. My contact lenses? (with holder and solution) – need (without glasses)
Grooming items
1. 2 hair clippers (w/ adjustment combs) - want
2. 4 hair brushes - want
3. 2 hair combs - need
4. Hair scissors - want
5. 2 2-in-1 Suave Men’s shampoo and conditioner - need
6. 3 deodorant sticks – want (society pressures)
7. Bath & Body Works NOIR 2-in-1 hair and body wash and Ultra Shea Body Cream – want
8. 1 200-pack of One-a-day Men’s Vitamin vitamins - want
9. 3 colognes - want
10. Dove soap (unscented) - need
11. Aquaphor Healing Ointment – need, but can be substituted
12. Body lotion - need
13. 40 towels (all sizes) – want
Additional items (transportation, household furnishings, appliances, and more)
1. Lamp - want
2. Dresser - want
3. Nightstand - want
4. Adidas travel bag – need, when traveling
5. Two bookcases - want
6. Furnished bed - want
7. Car (2018 Hyundai Elantra) - need
8. Photographs of friends and family, signs of affirmation, calendar - want
9. Planner - want
10. Debit and Credit cards - need
11. 30 Envelopes - want
12. Best birthday cards I’ve received (about 60) - want
13. 98 DVDs - want
14. 50 CDs - want
15. 60 cards (birthday, holiday, and special event) - want
16. 10 gift bags - want
17. 3 pieces of luggage – need, when traveling (but not that many)
18. Bb trumpet (with cleaning kit) - want
19. 6 posters - want
20. 4 yearbooks - want
21. Misc. business and personal documents and papers – need because security
22. Napkins, toilet paper, tissue, paper towels - want
23. Toolkit (ex: screwdriver) - need
24. Business cards - want
[The home that I live in has the following appliances]
25. 2 full bathrooms
26. 1 half bathroom
27. Dishwasher
28. Kitchen
29. Washer and Dryer
30. 2 Refrigerators
I took this assignment very seriously. I made it personal. I was on a quest to understand how much I take things for granted. Today, there are places in the world where people will sacrifice their lives for a portion of what I have in my possession to be given to their family. If you’re reading this, the same probably goes for you too. We have the agency to contest damaging things that linger in our cultures, like consumerism. Somehow, one of the cultures I belong to enforced the idea that Nike, Adidas, Toshiba, Suave, Bath and Body Works, and other “brand name” companies deserve my loyalty. What I love about this assignment -at least at this moment- is: I’m questioning how and why I have things. Some things I have were given as gifts, while other things were bought at a price that I could’ve bought the same thing, with the same quality, at a fraction of the price. Some are brand new, some are worn. Some things look or feel better than others. But one thing is for sure, most of these things are wants. I don’t need most of this stuff. So, I ask myself: if a fire broke out on the third floor of my home, and I had a few minutes to grab all that I wanted or needed, what would I grab?
Five wants
1. 4 watches – two are gifts, two I bought. I was raised to believe to never believe a man without a watch, because he will not value your time if he doesn’t value his own time. However, a man does not necessarily value time by whether he is wearing a watch. Plus, I can just check my phone, look at clocks, or ask people what time it is.
2. Post-Its and notecards, highlighters, colored pencils – all these things are great to make papers organized and pretty, but they aren’t a need. I can just use pencils and pens to supplement to achieve the same purposes.
3. Bb trumpet (with cleaning kit) – I was a trumpet player from 6 years in grade school. I played in concert, marching, and jazz band. I was gifted with a mid-grade Bb Trumpet from my mother when I hit high school. So now, I keep it for sentimental reasons.
4. Bath & Body Works NOIR Ultra Shea Body Cream – This was a gift
5. 3 deodorant sticks – Most of us wear deodorant to keep our natural smells hidden due to society pressures. Some of us wear it so that we prevent our armpits from producing a lot of sweat. I consider the former a more valid point.
Five needs
1. iPhone 6 with chargers – My iPhone is a need because I need a phone for emergency purposes. For example, I commute to campus. I drive for hours on the freeway super early and super late at night. On the other hand, I don’t need to have such an expensive phone with so many features and instead of multiple chargers, one charger is sufficient.
2. Car (2018 Hyundai Elantra) – Yea, I’m questioning why I bought a new car too. Minor mistake but I’ll be alright. Similar to the iPhone, I do need a car, for car stuff, like transportation. I need my car to run errands, go to school, go to work, and more. But, I could’ve bought a hooptie and went on my mary way.
3. 10 pairs of shoes – I have a decent number of pairs of shoes, but I don’t need these many shoes. I need two pairs of shoes: one pair of sneakers to walk around campus in and one pair of dress shoes for work.
4. Three-in-one Solo Briefcase/Backpack – I can’t carry around all of my books, notebooks, and supplies in my arms all day, and I need these things for my classes during the day, so I need my backpack so that it can hold everything for me as I carry it around comfortably.
5. 12 belts – I do need a couple of belts. One for dress pants for work, and one for a pair of shorts and/or jeans. The rest are extra and not needed.
Please feel free to reply/comment!
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