Money is defined as " A medium that can be exchanged for goods and services and isused as a measure of thier values on the market, including amoung its forms a commodity such as gold, an offically issued coin or not, or a deposit in a checking account or other readity legit acount," according to . But money is a lot more than that, to mst people anyways, they lie, steal, kill, and die over it.
One might be wondering how exactly money came to be. In the beggining of time, barter, or trading goods and services for other goods and services, was used. Some places still use barter along with paper currency, money. Some used cattle and other animals to pay for goods and services. In early america, the pilgrims exchanged mirriors with the Indians for their goods and services.
All sorts of things have been used as money; compressed tea leaves, leather, Wampum (also known as strings of meads made from clam shells), ect... The very first coins, made by the chinese, where made of bronze and copper, much like today, near the end of the Stone Age. When paper currency was first being used it was backed by gold, as we all know, gold is very scarce, meaning there isn't much of it, and when a war rolled around there wasn't much money. The paper currency, dollars, of today is backed by silver, which we have more of.
As time procressed so will its currency. According to .org, "In our digital age, economic transactions regularly place electronically, without the exchange of any phycical currency. digintal cash in the form of bits and bytes will most likely continue to be the currency of the future."
Who knows where money will be kept in the future. In present days, we use banks. "Banks actually create money when they lend it. Here is how it works: most of the bank's loans are made to its own customers and are deposited in their checking accounts. Because the loan becomes a new deposit, just like a paycheck does, the bank once again holds a small percentage if that new account in reserve and again lents rhe remainder to someone else, repeating the money creation process many times." money pg. 11
As history has supported people quickly withdraw their money when they suspect that their might be something wrong in the economy, but of course these panics just make the economy worse off. Though, we have had some hard times in our economy it is not near as bad in many other countries, such as China. In sevral third world countries, they do not even have enough money to eat.
Poverty is, and always has been, a very big issue. Children starve and die of surable diseases . Approximitly 25,000 starve to death each year! It is not that there is not enough food, because there is. The problem is that the economy is so horrible that they cannot afford it. One can only imagen what effects being malnourished constantly has.
America has gone through some rough times in the economy as well. In 1929, it was worse than it has ever been. This was known as the Great Depression. Nearly one-third of the population did not have jobs. More products were produced then what could be sold. Lives were destroyed by the Great Depression! Which finally came to end in 1941.
It all started with the stock market crash of 1929, parchally. Then mearly two months following, stock holders had lost more than $40 billion dollars. When they wereunable to regain what was lost, it marked the beggining of the Great Depression.
This was followed by the failure of 9,000 banks. To make it even worse, bank deposits were uninsured and people lost all kinda of money. The banks that did not fail would not make out loans in fear that they too might fail. The "Dust Bowl" even played a part in this economic disaster.
Today's economy is not in the bestshape either. Obama is trying to produce more jobs by spending even more money that, little does his realise, is making the economy go even more downhill. People are being layed off left and right, they are even becoming homeless due to lack of jobs. Let us just hope that this is not turing into another Depression. They only thing that can be done is to work hard and be smart with our money.
Money is very important, like it or not. It even controls a lot of what happens today. It determines weither people have homes, food, clothes, and all kinds of important things we need in order to survive. Without money we could not have all the things we have today.