A Brief History Of Money - How Intervention Has Shaped Our Money
Delve into the history of money and how interventions have shaped our
currency system. Learn about the evolution of money in this brief
overview.
The Hidden Cost of Money: How Financial Forces Shape Our Lives & the
World Around Us By: Sebastian Bunney
Hear it Here - https://adbl.co/4bhrRDt
https://www.amazon.com/dp/B0CPNGJF5L
Discover the untold story of money and how it has shaped our world. Join
us as we delve into the history of money, from its early origins to the
complex financial systems of today. Learn how government intervention
and monetary policies have influenced the value of money, and how these
changes have impacted our lives in both positive and negative ways.
Explore the hidden costs of our current monetary system and gain
insights into how we can build a more equitable and sustainable future.
Transcript
The Hidden Cost of Money:
Speaker:How Financial Forces Shape Our Lives & the World Around Us Written by
Speaker:Sebastian Bunney, narrated by russell newton.
Speaker:Chapter 1 .- A Brief History of Money .- How Intervention Has Shaped The Money
Speaker:We Use.
Speaker:“It ain’t what you don’t know that gets you into trouble.
Speaker:It’s what you know for sure that just ain’t so."
Speaker:—Mark Twain.
Speaker:Consider David,
Speaker:a passionate individual who consistently directs his savings toward acquiring
Speaker:outdoor gear,
Speaker:such as camping equipment.
Speaker:The farmer whose livelihood is transformed by an unprecedented surge in demand
Speaker:for ethically sourced,
Speaker:locally produced,
Speaker:grass-fed beef.
Speaker:A boycott where conscientious consumers unite in their refusal to support
Speaker:manufacturers that disregard ethical practices.
Speaker:Or a nation whose economy plummets due to a global rejection of natural
Speaker:resources extracted under inhumane conditions.
Speaker:In each of these scenarios,
Speaker:what valuable insights can we gain from analyzing the money flow,
Speaker:or lack thereof?
Speaker:By monitoring the movement of money,
Speaker:be it on an individual or macroeconomic level,
Speaker:we can uncover profound insights into the underlying values driving personal
Speaker:expenditure or,
Speaker:in a broader context,
Speaker:our shared societal values.
Speaker:Take,
Speaker:for example,
Speaker:David's spending habits which reveal his deep appreciation for nature and the
Speaker:outdoors.
Speaker:Similarly,
Speaker:the surging demand for grass-fed beef not only reflects changing dietary
Speaker:preferences but also underscores the growing significance of ethical,
Speaker:locally sourced products.
Speaker:However,
Speaker:this revelation comes with a crucial caveat - only under specific monetary
Speaker:conditions can money truly serve as an authentic reflection of who we are,
Speaker:our unwavering priorities,
Speaker:and the very essence of what we hold dear.
Speaker:When it comes to romantic relationships,
Speaker:no matter how much time or effort we invest,
Speaker:without establishing effective lines of communication,
Speaker:our understanding of our partner's needs becomes distorted,
Speaker:and vice versa.
Speaker:This breakdown in comprehension ultimately dooms the connection,
Speaker:as we lack the capacity to discern the necessary steps for progress.
Speaker:That said,
Speaker:just as how a breakdown in communication can spell the end of a relationship,
Speaker:numerous societal challenges arise when an ineffective monetary system impedes
Speaker:our ability to convey our needs and values.
Speaker:Open lines of monetary communication mean we can allocate our capital according
Speaker:to our beliefs.
Speaker:When declining purchasing power,
Speaker:capital controls,
Speaker:spending limits,
Speaker:or purchasing restrictions hinder our capacity to direct capital where we see
Speaker:fit,
Speaker:money's ability to mirror our societal values begins to erode.
Speaker:Under such circumstances,
Speaker:our capacity to express ourselves monetarily becomes inhibited,
Speaker:suppressing the truth.
Speaker:Consequently,
Speaker:the economy experiences cascading effects,
Speaker:including loss of authenticity,
Speaker:wealth inequality,
Speaker:needless consumption,
Speaker:and environmental degradation,
Speaker:among others.
Speaker:Much like how emotional expression is integral to emotional maturity,
Speaker:freedom of monetary expression is vital for a sustainable and functioning
Speaker:economy.
Speaker:For both relationships and societies to endure,
Speaker:let alone thrive,
Speaker:we must cultivate genuine self-expression in alignment with our beliefs.
Speaker:This allows us to perceive reality as it truly is,
Speaker:or at the very least,
Speaker:as closely aligned with reality as possible,
Speaker:aiding us in offering value.
Speaker:Remember,
Speaker:everything is downstream of money.
Speaker:If we want humanity to flourish,
Speaker:we must ensure truth and integrity underpin our money.
Speaker:With all this in mind,
Speaker:let's delve into the heart of our economy—our monetary system—to uncover
Speaker:how it has gone astray,
Speaker:hindering our ability to express ourselves truthfully and precisely.
Speaker:Our Monetary System Picture yourself embarking on a journey from New York's J.
Speaker:F. K. Airport to Tokyo's Narita International Airport.
Speaker:Spanning over 14 hours,
Speaker:this flight covers 10,871 kilometres.
Speaker:Now,
Speaker:imagine the pilot miscalculates his trajectory by a mere 1o during takeoff.
Speaker:Though seemingly insignificant,
Speaker:you'd discover yourself hundreds of kilometres off-course from Tokyo by the
Speaker:time you intended to arrive.
Speaker:You're now over the Sea of Japan or the Pacific Ocean,
Speaker:with dwindling fuel reserves.
Speaker:Much like we rely on faith and trust in our pilot's skills,
Speaker:flight instruments,
Speaker:and navigation systems,
Speaker:we must also bestow substantial faith and trust in the layers of our monetary
Speaker:system -
Speaker:•We place our trust in central bankers,
Speaker:hoping they possess the expertise and knowledge necessary to navigate the
Speaker:complexities of a macroeconomic environment and make decisions for the
Speaker:betterment of society.
Speaker:•We must rely on commercial banks to access our money whenever we make a
Speaker:withdrawal.
Speaker:•We place great trust in our money,
Speaker:hoping it incentivizes positive and productive behaviour.
Speaker:•We rely on the stability and continued usability of the currency we earn as
Speaker:income to fulfill our desires and meet our essential needs.
Speaker:•We must put our faith in those in positions of power,
Speaker:trusting that they have the best interests of the economy and the people at
Speaker:heart.
Speaker:Just like the pilot example above,
Speaker:in any of these situations,
Speaker:if the individuals or institutions in question were to fall short,
Speaker:the consequences could be catastrophic.
Speaker:So,
Speaker:is our monetary system and its participants deserving of the considerable trust
Speaker:we grant them?
Speaker:Let's take a closer look at the history and current state of our monetary
Speaker:system to explore whether it's truly worthy of our confidence.
Speaker:The 4 Factors of Production.
Speaker:Our economy may seem complex and overwhelming at first glance,
Speaker:with numerous moving parts and intricate systems.
Speaker:However,
Speaker:with a closer examination,
Speaker:it becomes clear that everything within our economy can be distilled into four
Speaker:key areas - land,
Speaker:labour,
Speaker:enterprise,
Speaker:and capital.
Speaker:These four areas are known as the four factors of production,
Speaker:which,
Speaker:combined,
Speaker:form the building blocks of all goods and services.
Speaker:Understanding them,
Speaker:therefore,
Speaker:is essential to understanding how our economy functions.
Speaker:Let's take a look at the four factors of production and explore how each one
Speaker:plays a crucial role in the functioning of our economy.
Speaker:Land First,
Speaker:we have the factor of land,
Speaker:which encompasses all types of land,
Speaker:including everything from agricultural land to commercial real estate.
Speaker:However,
Speaker:and more importantly,
Speaker:it includes all our natural resources,
Speaker:such as oil,
Speaker:gold,
Speaker:lumber,
Speaker:and minerals.
Speaker:Anything involving land use or requiring extraction from our natural
Speaker:environment falls under the land factor.
Speaker:Labour Second,
Speaker:there is the factor of labour,
Speaker:which is the mental and physical effort the population expends to bring goods
Speaker:or services to the market.
Speaker:This includes everyone from construction workers and restaurant staff to
Speaker:receptionists and manufacturing plant employees.
Speaker:Demographics,
Speaker:like age composition or education levels,
Speaker:greatly impact the productivity of the labour workforce.
Speaker:Capital Third,
Speaker:we have the factor of capital.
Speaker:Capital is the lifeblood of most businesses,
Speaker:providing the necessary funds to purchase equipment and infrastructure required
Speaker:to manufacture goods and provide services.
Speaker:Capital goods can include machinery,
Speaker:vehicles,
Speaker:tools,
Speaker:and other physical assets necessary to produce goods and services efficiently.
Speaker:Without capital,
Speaker:businesses struggle to survive,
Speaker:unable to meet their expenses,
Speaker:purchase materials,
Speaker:pay for production,
Speaker:or invest in the equipment needed to improve productivity and expand operations.
Speaker:As such,
Speaker:the availability and accessibility of capital play a critical role in the
Speaker:health and growth of the economy.
Speaker:Enterprise Last,
Speaker:we have the factor of enterprise or entrepreneurship,
Speaker:which utilizes the other three factors to create innovative products and
Speaker:services that generate profit and increase productivity.
Speaker:Enterprise is the catalyst that brings the factors together with purpose.
Speaker:As Luis Portes,
Speaker:a professor of economics at Montclair State University,
Speaker:explains - "Entrepreneurial activity is the engine of innovation that brings
Speaker:new ways of organizing land,
Speaker:capital and labour to produce new goods and services."
Speaker:In short,
Speaker:enterprise plays a critical role in a nation's economic growth and development.
Speaker:With an understanding of the four factors of production,
Speaker:we can start to piece together the incentives that underlie our economy.
Speaker:But... have you ever noticed that although there are four factors that make up
Speaker:our economy,
Speaker:we only ever seem to hear about one in particular.
Speaker:That is the factor of capital.
Speaker:There are far more news stories,
Speaker:such as - “Fed announces massive cash injection to relieve U. S. debt
Speaker:market.”9 “Biden,
Speaker:McCarthy reach agreement ... to raise debt ceiling as default looms.”10
Speaker:“Stimulus Checks Substantially Reduced Hardship,
Speaker:Study Shows.”11 Yet far and few between about how - "We need to have more
Speaker:children to boost labour capacity!"
Speaker:"Increase our ability to extract more natural resources."
Speaker:"Bet on technological change to fix our issues."
Speaker:If you're wondering,
Speaker:"Why does capital command this attention?"
Speaker:You're not alone!
Speaker:When times get tough,
Speaker:we can think of each of these factors as a lever that can be pulled to increase
Speaker:productivity and reduce economic stress.
Speaker:For instance,
Speaker:pulling the "land" lever can involve redirecting efforts toward obtaining more
Speaker:natural resources or improving agricultural productivity.
Speaker:However,
Speaker:this approach has several challenges,
Speaker:such as -
Speaker:•There is no guarantee that we will discover new resources or experience a
Speaker:significant increase in land productivity within the desired timeframe.
Speaker:•The process of promoting land use and increasing resource production can
Speaker:take a long time.
Speaker:For example,
Speaker:it takes roughly five years to build a new solar farm and between 1 to 10 years
Speaker:to build a gold mine.12,13 Even after completion,
Speaker:there is only a small chance it will be a productive site.
Speaker:•Regulations aimed at minimizing environmental impact have made it
Speaker:increasingly difficult to start new projects related to traditional energy
Speaker:production.
Speaker:In fact,
Speaker:some countries are even buying out farmers to meet their climate goals,
Speaker:such as the Netherlands,
Speaker:the second-largest agricultural exporter globally.14 As a result,
Speaker:pulling the "land" lever has become less effective and less profitable than it
Speaker:has been historically.
Speaker:Another option could be to direct our attention to the “labour” lever.
Speaker:By implementing austerity measures such as cutting public programs,
Speaker:raising taxes and so on,
Speaker:we could push the labour workforce to increase production by working harder and
Speaker:longer,
Speaker:all while reducing consumption,
Speaker:given their reduction in expendable income.
Speaker:The challenge is that not only are these measures politically unfavourable and
Speaker:usually avoided by politicians,
Speaker:but the general populace also doesn't tend to favour such measures,
Speaker:considering that austerity predominantly impacts the lower and middle classes
Speaker:and has an immediate negative impact on our quality of life.
Speaker:We also often overlook the demographic hurdles we currently face.
Speaker:Here are a few glaring facts that may give us some clues as to what to expect
Speaker:moving forward .- The Past.
Speaker:•The U. S. population grew by 40% between 1950 and 1960.15
Speaker:•The global population doubled between 1950 and 1987.16
Speaker:•During the 1970s,
Speaker:the Baby Boomers began supporting themselves and entering the workforce,
Speaker:creating greater demand for goods,
Speaker:services and assets due to their high numbers.
Speaker:The Future
Speaker:•The percentage of senior citizen-aged Canadians (aged 65 and over)
Speaker:will increase by around 60% between 2019 and 2036,
Speaker:compared to an increase of under 10% for the younger population.17
Speaker:•A study by the People's Bank of China revealed that "China's population
Speaker:could halve in the next 45 years."
Speaker:This has been
Speaker:The Hidden Cost of Money:
Speaker:How Financial Forces Shape Our Lives & the World Around Us Written by
Speaker:Sebastian Bunney, narrated by russell newton.
