# Why do we have money?

**URL:** <https://boards.straightdope.com/t/why-do-we-have-money/764632>\
**Category:** Factual Questions\
**Created:** [September 1, 2016, 5:13am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632 "2016-09-01T05:13:36Z")\
**Posts on this page:** 20\
**Page:** 1

<div class="post-metadata">

**Author:** ![Machinaforce](https://avatars.discourse-cdn.com/v4/letter/m/aeb1de/32.png) [@Machinaforce](https://boards.straightdope.com/u/Machinaforce)\
**Post date:** [September 1, 2016, 5:13am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/1 "2016-09-01T05:13:36Z")

</div>

Why do we have it and do we need to continue to use the system?

I heard some people talking about why do we need to pay to live on the planet.

---

<div class="post-metadata">

**Author:** ![magnusblitz](https://avatars.discourse-cdn.com/v4/letter/m/b4bc9f/32.png) [@magnusblitz](https://boards.straightdope.com/u/magnusblitz)\
**Post date:** [September 1, 2016, 5:25am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/2 "2016-09-01T05:25:32Z")

</div>

Are you asking about currency, capitalism, or something else? Because the thread title made me think the former, but your last line made me think you’re asking about capitalism in general.

---

<div class="post-metadata">

**Author:** ![Machinaforce](https://avatars.discourse-cdn.com/v4/letter/m/aeb1de/32.png) [@Machinaforce](https://boards.straightdope.com/u/Machinaforce)\
**Post date:** [September 1, 2016, 5:31am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/3 "2016-09-01T05:31:23Z")

</div>

I guess it’s more like why do we use money and do we have to pay for things?

---

<div class="post-metadata">

**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\
**Post date:** [September 1, 2016, 5:53am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/4 "2016-09-01T05:53:21Z")

</div>

We use money because it’s convenient. Without it, the only way to get stuff (aside from just taking it) is through barter or exchange of trade. That gets inconvenient when you need a sheep but the only guy who has any sheep only wants a new musket or iPad Mini in exchange for one.

Money allows you to negotiate on a price in dollars (or whatever) for the sheep and the guy can then go spend that money on an iPad later.

This is a much more efficient and convenient way to organize an economy.

---

<div class="post-metadata">

**Author:** ![Machinaforce](https://avatars.discourse-cdn.com/v4/letter/m/aeb1de/32.png) [@Machinaforce](https://boards.straightdope.com/u/Machinaforce)\
**Post date:** [September 1, 2016, 5:58am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/5 "2016-09-01T05:58:56Z")

</div>

> [@friedo](#):
>
> We use money because it’s convenient. Without it, the only way to get stuff (aside from just taking it) is through barter or exchange of trade. That gets inconvenient when you need a sheep but the only guy who has any sheep only wants a new musket or iPad Mini in exchange for one.
> 
> Money allows you to negotiate on a price in dollars (or whatever) for the sheep and the guy can then go spend that money on an iPad later.
> 
> This is a much more efficient and convenient way to organize an economy.

Any particular reason we don’t just provide things for free with people?

---

<div class="post-metadata">

**Author:** ![Lord\_Feldon](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lord_feldon/32/341_2.png) [@Lord\_Feldon](https://boards.straightdope.com/u/Lord_Feldon)\
**Post date:** [September 1, 2016, 5:59am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/6 "2016-09-01T05:59:37Z")

</div>

> [@Machinaforce](#):
>
> Any particular reason we don’t just provide things for free with people?

Because everybody will want to take rather than make, and soon there will be nothing to provide.

---

<div class="post-metadata">

**Author:** ![Mangetout](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mangetout/32/19_2.png) [@Mangetout](https://boards.straightdope.com/u/Mangetout)\
**Post date:** [September 1, 2016, 6:14am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/7 "2016-09-01T06:14:25Z")

</div>

> [@Machinaforce](#):
>
> Any particular reason we don’t just provide things for free with people?

What job do you work in? Would you do it for free? If not, how would it get done at all? What would happen to the people who want [whatever it is that is the output of your work]?

Let’s say you work as manager of a pizza restaurant. People should get pizza for free, without money - are you still going to run your restaurant for nothing?  
Your pizza oven breaks down. You need an engineer to fix it - but why should he want to do that for nothing?  
He needs parts manufactured in a pizza oven factory - but who runs the factory, and why? Why would anyone bother running a factory for nothing when they could be out eating pizza instead, for free?

---

<div class="post-metadata">

**Author:** ![Riemann](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/riemann/32/3133_2.png) [@Riemann](https://boards.straightdope.com/u/Riemann)\
**Post date:** [September 1, 2016, 6:20am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/8 "2016-09-01T06:20:14Z")

</div>

When we have this…

> **[Post-scarcity economy](https://en.wikipedia.org/wiki/Post-scarcity_economy)**
>
> Post-scarcity is a theoretical economic situation in which most goods can be produced in great abundance with minimal human labor needed, so that they become available to all very cheaply or even freely. 
> Post-scarcity does not mean that scarcity has been eliminated for all goods and services but that all people can easily have their basic survival needs met along with some significant proportion of their desires for goods and services. Writers on the topic often emphasize that some commoditie...

…we won’t need money any more.

Until then, we do, for most things.  
Although people already do plenty of things for other people without demanding payment. It’s just that it’s dependent on the contributor to volunteer the work or goods – you won’t get very far demanding an iPhone for free just because of your vague philosophical objection to money.

You might like the _Culture_ science fiction novels by Iain M Banks.

---

<div class="post-metadata">

**Author:** ![kambuckta](https://avatars.discourse-cdn.com/v4/letter/k/53a042/32.png) [@kambuckta](https://boards.straightdope.com/u/kambuckta)\
**Post date:** [September 1, 2016, 6:24am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/9 "2016-09-01T06:24:17Z")

</div>

Let me guess…you’ve just started a Sociology 101 unit with Marxist Theory as the main subject??

---

<div class="post-metadata">

**Author:** ![Riemann](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/riemann/32/3133_2.png) [@Riemann](https://boards.straightdope.com/u/Riemann)\
**Post date:** [September 1, 2016, 6:29am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/10 "2016-09-01T06:29:35Z")

</div>

> [@kambuckta](#):
>
> Let me guess…you’ve just started a Sociology 101 unit with Marxist Theory as the main subject??

A succinct commentary on Marxism (and for me, possibly the most apt and insightful four words ever spoken in the history of the world on any subject) came from sociobiologist E.O.Wilson, a myrmecologist:

> [@](#):
>
> Wonderful theory, wrong species.

---

<div class="post-metadata">

**Author:** ![cochrane](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cochrane/32/10441_2.png) [@cochrane](https://boards.straightdope.com/u/cochrane)\
**Post date:** [September 1, 2016, 6:31am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/11 "2016-09-01T06:31:41Z")

</div>

> [@kambuckta](#):
>
> Let me guess…you’ve just started a Sociology 101 unit with Marxist Theory as the main subject??

Or he’s reporting back to his planet on hyoo-mon customs.

---

<div class="post-metadata">

**Author:** ![Riemann](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/riemann/32/3133_2.png) [@Riemann](https://boards.straightdope.com/u/Riemann)\
**Post date:** [September 1, 2016, 6:35am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/12 "2016-09-01T06:35:03Z")

</div>

> [@cochrane](#):
>
> Or he’s reporting back to his planet on hyoo-mon customs.

…and upset about interplanetary roaming charges?

---

<div class="post-metadata">

**Author:** ![Guinastasia](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/guinastasia/32/5751_2.png) [@Guinastasia](https://boards.straightdope.com/u/Guinastasia)\
**Post date:** [September 1, 2016, 6:57am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/13 "2016-09-01T06:57:46Z")

</div>

> [@Machinaforce](#):
>
> Any particular reason we don’t just provide things for free with people?

Okay, can I have your car?

---

<div class="post-metadata">

**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\
**Post date:** [September 1, 2016, 7:00am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/14 "2016-09-01T07:00:15Z")

</div>

> [@Machinaforce](#):
>
> Any particular reason we don’t just provide things for free with people?

Who would provide these things, and why? What happens when 10 people want a sheep but there are only five sheep available?

---

<div class="post-metadata">

**Author:** ![Riemann](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/riemann/32/3133_2.png) [@Riemann](https://boards.straightdope.com/u/Riemann)\
**Post date:** [September 1, 2016, 7:06am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/15 "2016-09-01T07:06:45Z")

</div>

> [@Machinaforce](#):
>
> Any particular reason we don’t just provide things for free with people?

Actually maybe everyone has misunderstood your point here. You are saying that we should pay money for people, but there should be a free gift when you buy a person?

---

<div class="post-metadata">

**Author:** ![Keeve](https://avatars.discourse-cdn.com/v4/letter/k/f07891/32.png) [@Keeve](https://boards.straightdope.com/u/Keeve)\
**Post date:** [September 1, 2016, 9:52am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/16 "2016-09-01T09:52:04Z")

</div>

> [@Riemann](#):
>
> … from sociobiologist E.O.Wilson, a myrmecologist:

Great quote, but I didn’t understand it until I looked up the word “myrmecology”. **Machinaforce** , I suggest you look it up too; it might help you understand your question from another point of view.

---

<div class="post-metadata">

**Author:** ![Mangetout](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mangetout/32/19_2.png) [@Mangetout](https://boards.straightdope.com/u/Mangetout)\
**Post date:** [September 1, 2016, 10:01am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/17 "2016-09-01T10:01:42Z")

</div>

> [@Riemann](#):
>
> Actually maybe everyone has misunderstood your point here. You are saying that we should pay money for people, but there should be a free gift when you buy a person?

It certainly would be a reversal of the current state. I got a Free Nelson Mandela once.

---

<div class="post-metadata">

**Author:** ![Fleetwood](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/fleetwood/32/271_2.png) [@Fleetwood](https://boards.straightdope.com/u/Fleetwood)\
**Post date:** [September 1, 2016, 10:33am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/18 "2016-09-01T10:33:02Z")

</div>

> [@Mangetout](#):
>
> It certainly would be a reversal of the current state. I got a Free Nelson Mandela once.

You think too small. _I_ got a Free Tibet, myself.

---

<div class="post-metadata">

**Author:** ![BrotherCadfael](https://avatars.discourse-cdn.com/v4/letter/b/977dab/32.png) [@BrotherCadfael](https://boards.straightdope.com/u/BrotherCadfael)\
**Post date:** [September 1, 2016, 10:54am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/19 "2016-09-01T10:54:17Z")

</div>

Oh, grow up. I was six when I asked my dad the same question. At six, it’s a reasonable question. Not so much beyond that.

---

<div class="post-metadata">

**Author:** ![DrFidelius](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/drfidelius/32/3447_2.png) [@DrFidelius](https://boards.straightdope.com/u/DrFidelius)\
**Post date:** [September 1, 2016, 11:08am UTC](https://boards.straightdope.com/t/why-do-we-have-money/764632/20 "2016-09-01T11:08:36Z")

</div>

> [@Fleetwood](#):
>
> You think too small. _I_ got a Free Tibet, myself.

But the shipping and handling were extra.

[Next page](https://boards.straightdope.com/t/why-do-we-have-money/764632.md?page=2)
