better world · Real Life Economy

Conversation about value – Your money is losing value every day

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Can you actually explain to a 10 years old what value is all about? We like to think that we can. In the reality, the evolution of our monetary system and the prices of our daily products are fluctuating so often, that an honest moment of reflection will bring the majority of the people to understand they cannot explain our current system of valuation.

There is many reasons for it. I spoke about it in my previous post (Click here to read more). To make it simple, as money became an abstract concept (No, we do not hold gold in reserved to back up our current currencies….Not for at least 70 years), our capacity to grasp the concept of value becomes extremely complicated. a simple way to approach the subject, will be look at the salary of people compared to the cost of living. If we will take the minimum wage of a person as an indicator for the value of an individual worth as a measurement of his time (The value of a salary is normally reflected as the time and effort a person but in a specific task), we could expect that that the sum will represent an equal value to the cost of living. Alas, this is not the case.

The fact that a minimum wage cannot support decently a person in the majority of the countries, is the first reason we find it hard to valuate anything. A second factor is the amount of different prices we have in our market for a variety of products that are serving the same functionality. How come a Tshirt can range From 1$- 200$? How comes a table can range from 15$-10,000$?

Inflation is killing humanity

Moreover, the cost of living in our society is constantly growing, while our Money worth diminish on a yearly basic. In fact, not only that the minimum salaries are not growing proportionally to the cost of living, inflation creates a reality in which the same amount of money earned by an individual worth less each year. It is easy to notice, while the cost of rents, properties and products are rising constantly the inflation is killing our currency creating a mechanism of a double lost. Those are are all part of the reasons we are losing our capacity to understand the concept of value. Many people are becoming poor not because they are not working or contributing enough, but because their income and worth is not longer valuable as the market rise.

By losing the capacity to valuate things around us, we are losing our capacity to evaluate our time and our worth. By doing so, we become weak in front of the system that we are living in, lost in an ocean of random pricing. This reality is crumbling our society as it create a separation between the seller to the consumers. Giving the first an ultimate power of the price of our income and the price of the products we buy. In a previous conversation about our economy (Click here), I demonstrate how a system in which the majority of the people work for a cooperation and spend their income in another cooperation creates a enslaved and weak society.

I truly believe that understanding where value come from, will allow people to evaluate better the life around them and get control on their lives. Which will create a stronger society that can march into general prosperity. It is fundamental as our incapability to understand the topic affect everything in our lives, including how we see ourselves psychologically. Value is a real concept that used to represent capacity and practicality. as it change and becomes abstract, so our real capacity to control our life and to peacefully prosper.

In my next posts I will get deeper into what value is all about and how we can recreate a society in which real value is given based in constructive principles.

Share you thought with me in the comment section and express your opinion. Awareness and open conversation are the key for the creation of a better future.

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3 thoughts on “Conversation about value – Your money is losing value every day

  1. Super post! I always like to work out how much gold/ silver/ oil/ stocks a big purchase Costs. Not only the monetary value but he value of other key commodities and asset classes to get a feeling for true value.

    I read your book btw!! The main takeaway for me was that the biggest change has been communication, not the increased intellect of Homo sapiens. I see it everywhere now that you drew my attention to it.

    Thanks so much for sharing

    Mike

    1. Thank you for taking the time to comment.

      Value is a subject that touch everything we do I our current society. The following posts in the subject are getting deeper into the subject. I would love hearing your thoughts about it.

      Thank you for taking the time to read my book. I’m happy it gave you some different perspective about humans as a whole.

      Please let me know more about your thoughts in the subject. The purpose of my book is to promote awareness and open conversation regarding the possibilities we have for the creation of a better world.

      We are living in a very one direction close mind perspective. I believe the key for a better future comes from our capacity to hold a variety of opinion.

      1. Yes I think that’s so true. We are conditioned to live a certain way when there are unlimited possibilities for how to live.

        We don’t even consider these options because many people are not aware of them. Or end up involved in something before figuring it out.

        Really enjoy reading your work

        Mike

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