PERSPECTIVES / THE SHARED ILLUSION OF MONEY
Money and resources equal power.
Throughout the centuries, this influence (because what is money and power if not influence) has informed the mapping of national borders, the distribution of food and water and also added to the imbalance between those who have and those who have not.
Viewing value, influence and power through a historical lens, it is clear that it is primarily the culture of the elites that has survived the force of time.
The pyramids in Egypt are manifestations of the ideas of the ruling class, as are the many Medici castles in Italy.
History is written by those who had the most resources.
But what is a monetary resource? Today, we are moving towards a cashless society, and thus money will not even be seen, only used in invisible digital transactions.
The value assigned to a coin is not intrinsic but an effect of a shared belief in what it is worth at a given point in time.
This value fluctuates, and we also believe in this fluctuation (even though very few understand its logic).
Money represents one of the strongest shared beliefs between humans, held by almost every single living person, transcending language, geography and background. It has not been without critics.
One of the most famous was Cambodian dictator Pol Pot, who attempted to abolish money, markets and private property, even blowing up the Central Bank to prove his point.
Eventually, the Communist regime of the Khmer Rouge (1975–79) broke down, and today, the country is once again using money (after having used rice as a substitute during the Communist years).
Money aids in understanding how to measure things, such as the value of work in relation to time spent working.
It makes tasks quantifiable, providing a sense that we are living in a meaningful society, while also making individuals feel as though they are more independent and self-sufficient.
However, there are also negative side-effects of this belief system: some become less altruistic toward others.
This points to an interesting fact: money affects the nature of social relationships, leading us to view social relations in free market terms; that some people are worth more (or less) than others.
Beliefs in money are often inherited, as children tend to take on the same views on money as their parents. Some will tend to avoid it, as though they don’t deserve to have money, or think that money is bad. For this category, money is a source of anxiousness.
Others will worship money, believing it will solve all of life’s problems and bring happiness.
A third category will believe that money confers status, thus linking the number in their bank account to their sense of self-worth, while a fourth group will believe that it is important to work and save. This group is watchful, frugal and concerned about finances.
Knowing which belief-system you have inherited will make you better understand your relationship with economics, making money work to your advantage.
