Author Topic: How money was invented (maybe)  (Read 1316 times)

Offline Mr. Bill

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How money was invented (maybe)
« on: July 29, 2018, 03:43:24 PM »
Interesting article:

Science News, 7/29/18: Conflict reigns over the history and origins of money

...Economists have held one view of money’s origins for hundreds of years. But a growing number of anthropologists and archaeologists, holding a revisionist view, say that economists’ standard story is bankrupt.

Economists and revisionists alike agree that an object defined as money works in four ways: First, it serves as a means for exchanging goods and services. Currency enables payment of debts. It represents a general measure of value, making it possible to calculate prices of all sorts of items. And, finally, money can be stored as a wealth reserve.

From there, the two groups split. Mainstream economists assume that bartering of goods and services inspired money’s invention. Anthropologists and archaeologists contend that early states invented currency as a means of debt payment. ...

“Adam Smith based his ‘creation myth’ of financial systems on ignorance of what actually happened in the past,” says archaeologist Robert Rosenswig of the University at Albany in New York.

Early governments created money to pay off public works debts and to collect taxes, Rosenswig contends. Bartering had nothing to do with it. Instead, money grew out of older systems of credit and debt, which anthropologists have documented for more than a century. ...
« Last Edit: July 29, 2018, 04:53:59 PM by Mr. Bill »

Offline FreeLancer

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Re: How money was invented (maybe)
« Reply #1 on: July 29, 2018, 04:11:05 PM »
Very interesting!

Offline David in MN

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Re: How money was invented (maybe)
« Reply #2 on: July 29, 2018, 07:55:51 PM »
Yeah, I've read this argument before. Falls on its face in places like feudal Japan where the currency was rice or Roman soldiers who got paid in salt. It also fails to explain the Vikings who coveted gold and silver millennia before the industrial uses were discovered.

All one need do is look at the history of the Vikings who sailed south laden with animal furs and honey to exchange in Khazaria for silver thay couldn't eat, wear, or use to keep their children warm.

What came first? Silver or Diocletian's shit coins? Spanish pieces of eight or the American dollar? You will never find a currency that was not originated in true market value.

Offline iam4liberty

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Re: How money was invented (maybe)
« Reply #3 on: July 29, 2018, 11:02:06 PM »
And we dont just have to look at the past, we can look at the now.  Whether it be cigarettes in prisons, casino chips, or digital currencies they all have originated with a barter exchange of goods.  Who is the bitcoin  taxing authority?  On what public work are modern day prisoners engaged?

Here is what a true expert thinks about the barterless hypothesis: