the Role Of Money in Society

Introduction

Most dictionaries define money as “the most common means of exchange.” In nearly every society, money works as the legal form of tender. The history of how the concept of money evolved is very interesting. At first, in a society money was in the form of cattle. They would be exchanged for whatever had to be bought, but this created problems.

History

The Evolution of Money to the Form We See It in Today

When we talk of society money and their relation, the present form of money has to be discussed. Currency evolved very slowly. For example, in Ancient Babylonian society money was in the form of receipts of deposit of grains at the public granaries. Earlier, in every society, currency was unknown. The barter system was prevalent, and one gave to another his produce, expecting to get something that he needed from that person. However, this was not a very efficient system as people couldn't necessarily find people who needed what they had to give and at the same time could give them what they needed. The goods were also bulky, and so transport was a major obstacle to trade.

To help sort out this problem, people created the concept of money. Even today, tribes that have had no contact or very little contact with the outside world still maintain primitive forms of money, such as seeds, beads, etc.

Features

Money and Society

For society, money worked wonders. The use of currency or tokens spread from one civilization to another through travel and trade. Rapid and increased trade was possible because of the advent of money in more portable forms. Prosperity increased and populations could grow. This let to urbanization.

Power had only been contained in those who had land till now, but money shifted focus from land owners. This ultimately led to the dilution of the feudal system and it was the moneyed commercial classes that slowly gained influence and gave rise to the system of democracy that we accept as being the best system of governance today.

However, in society money now plays a strange role. In the words of George Bernard Shaw, money is “the most important thing in the world: It represents health, strength, honor, generosity and beauty as conspicuously as the want of it represents illness, weakness, disgrace, meanness, and ugliness.” It creates much dispute and evokes many passionate reactions.

Comments

Most Recent Articles