Tuesday, September 27, 2011

What Would A World Without Money Look Like?

"Time and money are as inseparable as time and space."

Not long ago, I pondered what a world without debt would look like. I was discussing it with a friend who has thought I'm an idiot since we were in sixth grade, and he said my fantasy makes no sense because there is no tangible economic difference between cash and debt. Take away the debt, all you do is reduce the money supply causing further damage to the economy.

So together we explored the question, "What would the world look like without money?" How would we buy gas or groceries? We've long passed the time when people could live off the land, hunt for food, etc.And, although debt is a relatively new arrival, at least to the extent we do in the U.S., money has been around in one form or another since forever.

So we thought about it and came up with the following scenario. There is now no money. If you need groceries, you might go to the grocery store and ask for some food. The grocer might say something like, "OK. I have lots of food, and you can have some. But first, go do something that helps someone else or makes their life better. Have them write you a note: a certificate, if you will, documenting what you did that helped them. Bring the certificate back and I'll tell you how much food I'll give you for it."

The guys that have gasoline do the same thing. "Go do something good in the world, bring me back some certification that you actually did so, and I'll do something good for you." Even the guy that has beer makes you go demonstrate that you have contributed something to the world around you before he will give you any.

Every time you make a positive difference for other people in the world, they would write you a certificate - saying good things about you if you did something good and great things about you if you did something great. You could therefore get the food, gas and beer that you want and need just by handing over these certificates written by people that benefited from your efforts.

What would these certificates be called? Why not call them 'Dollars'?

Isn't this what earning money is supposed to be about? Doing something beneficial, or making some positive contribution of time, effort, skill or resources to the world around you?

One of the biggest problems we have in the American economy is that people have forgotten what money is. Money represents your relative value to the world at large. It represents your contribution and your role in making the world better for everyone.

Nobody is entitled to money, yet we have a plethora of people who think they are. And a whole bunch more that think they should receive maximum reward for minimal effort. People try to take more than they give, and think themselves smart. Even if they pull it off, the economy as a whole suffers from their fraud.

I think of the waiter who is too busy flirting with the waitress in the next section, who is ignoring her customers as well, to refill my drink as I choke on my food. And he's insulted when I don't tip 20-25%? The contractor who does shoddy work but expects to be paid in full because he has a 'contract'. The government that sucks so much money out of the economy that will never accomplish any positive purpose. These kinds of things will seriously damage even the most robust, innovative and booming economies.

Until we remember and respect the value of money and its function in our world, all of the economic wisdom known to man isn't going to make our economy work right, and it won't matter which moron we call President.