| Introduction | | | | his wheat for more milk, he is creating more than |
| This is probably the most famous question that | | | | just survival value for himself. Wheat alone can |
| we often ask ourselves: Why is money | | | | sufficiently provide him the calories needed for |
| important? The obvious answer is that without | | | | survival. More milk on the other hand; provides |
| money, we cannot survive. Think food for our | | | | not just plain calories but also more calcium and |
| stomach, water for our body composition, air for | | | | better food pleasures.The calcium and the |
| breathing and shelter for safety. Money is needed | | | | pleasure from the milk's taste will be value more |
| for us to catalyse the process of value creation | | | | than just survival value. When we talk about |
| when intrinsic value of goods and services are | | | | survival value, we talk about subsistence rather |
| circulated, so as to maximize our chances of | | | | than living our life. |
| survival and earn the right to luxury. | | | | It is because of more trade, that we are able to |
| The above statement may sound a bit abstract. | | | | enjoy greater value. Humans slowly improvised a |
| However if you will to examine the statement | | | | better system of trade, from barter trade to |
| under the premises of survival value and barter | | | | trade using money. One simple reason why this |
| trade, you will find it is as clear as ABC. For the | | | | improvisation has to take place is because barter |
| benefit of those who come across the term | | | | trading is simply not as efficient as trading using |
| 'survival value' and 'barter trade' for the first time, | | | | money. To be able to enjoy more luxuries and an |
| survival value is the ability to survive in this world | | | | advancement of civilization via creating more |
| while barter trade is simply buying things by | | | | value, we need to be able to trade more |
| exchanging value instead of using money. | | | | efficiently. Let's say you have money, you are |
| The Biology | | | | able to buy not just food, but also transportation, |
| Humans are born inefficiently to survive alone. | | | | clothes and even houses! Everybody wants lots |
| Unlike a tiger that is able to create value for itself | | | | of money but having more and more wheat does |
| to survive through its hunting mechanism using its | | | | not give us the same potential to influence and |
| sheer strength and razor-sharp claws and teeth | | | | create more trade. More trade means more value |
| that can kill with a single attack, a human does | | | | creation, thus more money means more potential |
| not possess killing tools anatomically. Thus in order | | | | for creating more value. |
| to create value for survival, humans has to resort | | | | Lack Of Money Vs Love Of Money |
| to making sharp arrows and spears as hunting | | | | We often hear that the love of money is the |
| tools. Unlike animals, humans are born with an | | | | root of all evil, because many people become |
| uncanny ability to increase survival value | | | | corrupted under the influence of money. Why |
| exponentially just by being more cooperative. | | | | should we not love money when it is a key |
| Some animals do cooperate, like a pack of lions. | | | | contributor to our essence of life? Without |
| However, the reason why the population of lions | | | | money, we cannot buy the things we desire such |
| today, is significantly lower than the human | | | | as a BMW and our perfect home. Without money, |
| population is because humans are able to create | | | | we did still be living a life of hard labor with |
| an abundance of survival value while the lions | | | | virtually little chance of greater fulfillment and |
| always have to physically hunt for food. In | | | | success in life. Without money, we will not be able |
| contrast to humans who can build better | | | | to survive! Money is like energy, we use that |
| weapons, plant crops and use fire, the lions are | | | | energy to produce things and create value. Like |
| not able to create an abundance of survival value. | | | | our physical body, we need food to give us |
| The Economics | | | | energy so that we can function. Money is a noble |
| Humans play the game even better when they | | | | object, we must love it. No offense, but those |
| begin to trade. When humans begin to experiment | | | | who really do not love more money and think |
| different means of creating survival value, it | | | | that it is the root of all evil, they really do not |
| became clear that due to the principle of scarcity | | | | deserve to live a life of fulfilling dreams. |
| in economics, trade starts to become a necessity. | | | | As a key contributor to our essence of life, when |
| People start to buy or create more abundance of | | | | we do not love money, we do not love our life. |
| survival value when they trade. Barter trade | | | | We only have one life, please treasure it. |
| makes life easier because it creates value more | | | | Do you love your life? |
| than just survival value. When the farmer trades | | | | |