Where does money come from? How does an economy keep getting more money – what is the origin?
In: Economics
money came about as a representation of debt. early societies didnt use barter significantly (despite the classic ‘money replaced barter’ story, there is no evidence that any society in history was ever based on barter), instead using ‘gift’ based economies where i give you what you need freely because i know you have my back too. which really comes down to labyrinthine networks of unspoken obligations and debts. premodern societies also usually have really high homicide rates, cant imagine why.
the base form of government is basically a group of bandits who realize they can extract value from their victims indefinitely if they keep them alive. early governments developed money as a token representing your tribute. i can demand you give me your food each year, but if i make tokens and demand my tribute in those, then you have to participate in my economy to exchange your food for tokens. by creating currency and only accepting tribute in it, stationary bandit governments pull their subjects into their economy, enforcing dependence and making themselves even more power.
haters will say im wrong, but its easy to see that modern government is just a more developed, less malignant evolution of this structure
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