22 June 2005

Moneyed socialists; Their intellectual error

It just seems that whenever one is berated for being too concerned with money it comes from a 'socialist' who has no money troubles themselves. Money is merely a convenient method of exchange and it is only those confused about the purpose and use of money who believe it to be inherently evil (or, equally wrong, but more sophisticated, that money in and of itself is morally destructive). Money allows us to convey value, often through complex chains of transactions, via many people we may never even meet. What is clear is that for any given monetary unit, it's value will decrease with the increase in supply. This is true as much for the individual as it is the true cause of inflation in an economy. Of course in the case of the individual the objective value of the monetary unit remains constant and only the subjective value varies.

Some basic understanding of what money is and why it is necessary may clear up the misconception that capitalist activity is merely the accumulation of money and show how without money complex transactions are impossible making us all worse off.

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