The modern society has been frontline in the money making routines as the influences of technology and other activities prompt such decisions. As it stands, money is the most vital item in the society and each individual requires such for personal use or corporation development (Ferguson, 2008). In the means to defining what money is, most of the scholars from psychological and physiological field have come up with the theoretical aspects of money and the ways it influences the economic growth of a particular country. This study will proceed to discuss the basic understanding of money, what purpose it brings to the society and the ways it is significant in the state. It will also cover on the understanding of money and how it has evolved in the 21st century, different from the ancient days.
What is money?
Max Weber and Karl Max were one of the great philosophers who prompted on the use of money in the basic way and the critical understanding of the item. In the normal societal understanding, money is the item used to purchase products and offer stability in a person’s life, through other exploration of resources as investments. The purpose of money was basically to promote a mentality and motive on how people should invest and have an open mind for the improvement of economic growth and financial stability. The suggestions on ideas concerning economic development and social science were advanced by the two philosophers who specified in sociology to help them understand the society in a better way.
What purpose it brings to the society and the ways it is significant in the state
In his reflection book on the ‘Economy and Society,’ there were explorations on the basic understanding of money. Money was described as a value that impacted the individual’s mindset and the mentality to view issues took a different outlook. Recognizing the basic understanding of money, according to Max and Weber, involved modernism and the economic challenges from both ends and the efforts to eliminate such. The monetary costs were described as those in terms of silver, gold or bronze, depending on the value they impacted on the society. Another argument suggested that there is no need to have a metallic value in terms of the monetary awareness on issues to purchase materials in the society. The price level of money was outstanding according to the scholars.
A gold standard that contained bulky bank notes suggested more monetary costs in the value. The banking school suggested and observed that exchanges are made, followed by pledges that would suggest the quantity of money stability. It maintained that the supply of money should be elastic to enhance the cooperation between the society and the organizations responsible for the cost of production. The quantity theory was, however, controversial based on the fact that money should have its limits, depending on the monetary costs and demands, this was impossible. According to Max, money exceeds the value of the product and the understanding because of the societal demands that increase with time. The exalted wisdom behind the transaction and the popularity of the increased awareness focused on the reality of the distribution and consumption.
History of money
Money was one of the ancient and purposeful items in the last decades. The civilization and inventions were important because they created an impact in the materialistic world, and the economic influences from various countries were noted as well. Without money, there would not be a relationship between two people and the society. Money provided an intermediary material that enabled the seller and buyer to meet on the marketing strategies that would benefit the stability of a particular organization and nation(Weber, 2012).
For the society which was illiterate and had no background entailing the progress and quality of money, the value of monetary consisted of livestock exchange and other beneficial resources that were categorized under the barter trade routines, mostly with a mission to satisfy the buyers and create a long term relationship. The possession of many trade routes and livestock were categorized into wealth and the activities that branded people vital in the society. The investment opportunities were the transformation of the ways people desired to live, but due to financial issues, had a challenge for the same.
In most culture, money with physical values was quoted as primitive money. Most of the categories were found in the African culture, and the cowries were one of the basics in the culture. The tiny cowry shells that were located in the Indian Ocean were one of the treasures that complemented the value of money. The Americans from India used a cylindrical like shell for the gifts of the ceremonies they held. The ornaments used were made of gold that were easily worn in the social events as a sign of currency that was portable. In the Indian culture, the wearing of ornaments is still practiced up to the 21st century as a sign of mobile money bank(Marx, 2010). The historical period focused more on the value additional products than the same item physically. Wealth was determined by the transformation of the money from physical commodity to monetary functions.
How money has evolved in the 21st century
As years elapse, the value of money is transformed into a quality product that contains the physical value to be used for several reasons. People depend on money for survival and other investment benefits they identify. Technology has influenced the production level of commodities because of the economic growth. Some other factors that contribute to the additional value include the means of human resource that govern the production level of the monetary power(Weber, 2012). People have gone an extra mile in finding opportunities for the access of money, due to inflation rates and high standards of living. Ideally, it is different from the ancient years as the value so high and the access is scarce, compared to the last five decades where acquiring money was easy through other commodities that would be exchanged for treasure and value.
Money has been a source of inspiration for people to search for job opportunities and the links that will provide the investment growth and development. The modern society is surrounded by various applications that rely on money for further values and resources. The consistency in the supply and distribution is determined by the amount of money an individual has. The accuracy and the currency factors have also impacted on the economic growth in various countries through the growth process. One of the basic priority and materials that drive production of money in the world is the technological factors which exert pressure for people to work harder. The means of survival and acquiring of the money process is through connecting with people and building relationships that are essential for future prosperity.
Ferguson, N. (2008). The Accent of Money; A financial history of money. New York, NY: Penguin Press.
Marx. K. (2010).The Manifesto of the Communist Party. London, Oxford University Press.
Weber, M. (2012).The Protestant Sects and the Spirit of Capitalism.New York, NY: New York University Press.