Cheap Money - Free Essay on Money Development

Published: 2022-04-08
Cheap Money - Free Essay on Money Development
Type of paper:  Essay
Categories:  Money
Pages: 5
Wordcount: 1340 words
12 min read

In world history, a man survived without money for a while. However, when some merchants realized how they could turn certain commodities into currency, they exploited the opportunity to the fullest. The beginning of money came as a result of possession. Not everyone had all that he needs. In the beginning, there were four major things that were necessary for life. These things were supposed to be affordable to everyone; labor, food, energy and raw materials. Essentially these covered the entire sectors of livelihood. In his book, Moore argued that the capitalism depended on the four cheap things. For capitalism to rise, the four things had to be cheap. Later in the capitalism diversification, he changed the narrative; the four cheap things became seven cheap things namely; cheap nature, cheap money cheap work, cheap care, cheap food, cheap energy, and cheap lives. Patel and Moore had been more engaged to discuss the efforts of the capitalist to obtain items with little compensation. Things were to be affordable to everyone; hence the name cheap. In the book, the main idea of Patel and Moore is to help the capitalist understand the ecological and metabolic relationship between man and nature. Furthermore, in the book capital has been used to mean money. Money is a medium of exchange. When you look at all these items, they revolve around currency. In the view of this book, the value is the base to which all wealth originates. To address value, the medium of exchange was worth considering hence money. The early traders first used gold, silver and diamond coins for exchange. The value of these items was profoundly high thence the introduction of paper money which was relatively cheap but binding to all. The book has offered a various instance of the money development.

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Essentially, metabolic rift as coined by Foster and Bellamy is the existing interdependence of beings and nature. It is an interrelationship between human beings and environment potent to the dynamic interchange that exists between them. The focal point of the concept is based on the alienation of nature by the capitalist in pursuit of gain. According to Marx's theory, the capitalism has had numerous ecological crises. He further alludes that the rift is irreparable; that it will continue to exist as long as the capitalist. Environmental conservationist has widely used the concept to for emphasis on the dire end human might get with nature.

Regarding the 19th-century guano trade, the metabolic rift is epitomized by the imbalanced created by the capitalist in the exhaustive use of nature to provide energy without despair. The concept of metabolic rift can be traced to the transfer of power between the rural areas and cities or the manufacture of manure and fertilizer to enrich the soils to enhance the growth of crops. The transfer of energy from underdeveloped and developing to the developed countries is an example of the disparity that represents the rift. According to Carl Marx' theory, it would also mean the movement of the natures nutrients for production thus depleting nature's resources in the local areas to make food available for the stable families thus facilitating the role of capitalist of production. During the 19th century, the nature resources were exploited for maximum production thus leading to the environmental pollution. The capitalist who majorly was the working class believed that they had a role to play the field of manufacturing and production to make things cheap and available to all neglecting the limits that could bring danger to nature.

The concept is useful to understand the international trade since it makes out a relationship between the developed economies and the underdeveloped economies. The advanced economies believed they had an obligation of production to maintain the provision of the products necessary for life; therefore they exploited the undeveloped nations. As been illustrated above, the importing countries acquired items at a much lower price and further used their resources to produce those things they sold. Labor is a fundamental factor of production; slavery became a significant item of trade. The capitalist would acquire slaves to provide cheap labor hence cheap output. The currencies from the underdeveloped nations were devalued and consequently resulted in unfair business during the time.

The word imperialism refers to the process in which the most dominant politico-economic interest of a particular nation is made to be primary over the rest; they tend to focus on their enrichment in regard t land, labor, raw materials, and market. In the instance herein Imperialism has been discussed in the chapter regarding nature in two perspectives. Firstly, the human being as part of nature and secondly other nature that constitutes the universe. In the 19th century, the imperialist had already gained power over nature. The conversion of human beings to an object of trade was the first sign that imperialism showed. The man who was supposed to be free and take care of nature had been converted to labor. The second example is the use ownership and privatization of land and its resources alienating human beings from using it. The land was owned by the imperialist making nature be a subject of production.

In the chapter of cheap money, imperialism manifest in various ways was the acquisition of power using the money. The capitalist was not only known as a profit-oriented merchant but also as the agents of power monopoly. In the chapter, governments have been used to showcase the importance of money control. Certain currencies were dismissed on the basis that they were made from cheap materials. Evidently, the imperialist considered money as a vital tool to for control; therefore, they made given standards for their currencies to stand. Imperialism is represented in the chapter with the instruments empire control. Most colonists during the 19th century used the money to control their territories.

Cheap money refers to the affordability of the currency by the users. It does not limit to business people but also to normal users. The term cheap money essentially refers to the level of access to credit funds for low-interest rates. It is only possible with the government or the central banks lowering the rates of borrowing. In the perspective of the capitalist, it would not be possible to attain cheap money without production. Ideally, for the availability of cheap money, productivity has to be increased to avail the products and services. With many gods and services, the value of money goes high, and the economy stabilizes. Therefore, the government would not be a crisis to retain money. In this case, money would be available in the hands of both the users and the businessmen. On the contrary, with limited production, the value of money goes low thence intriguing the government to hold money; in return acquiring money becomes expensive as the interest rates go high making money expensive.

Both the guano trade and the Silver mining in Peru were managed by the colonials. Peru having suffered from civil wars had become economically unstable and therefore depended on the trade and the silver mining. Both the trade and mining were characterized by the slave trade and cheap labor a. They were both established on an island. Major similarities of the guano trade and the silver mining were that they were based on the capitalism idea. In the mines, the industries exploitation was done inconsiderately of the environment. The trade, on the other hand, concentrated on centralizing market. The extracted petroleum, metals were major items of trade in the guano. The mining industry coexisted with trading industry cordially.

In a broader perspective, the trade and the mining activity might look fine now but would be the source of the countries problem in the future. The intensive mining to maintain the countries' economies would result in the depreciation of the natural resources. The economic growth of the middle class would lead to segregation in the society. The growth of trade and the industry would attract the interest of another imperialist would want to take control of the empire like was witnessed before.

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