Albert Garcia Professor Widrich 09/20/17 What Money Really Is J. Salerno speech “What is Money” informed the viewers on what money actually is and why it is used the way it is. Salerno explains that money came to be because of how people use to exchange goods with each other through the barter system before there was any monetary system and began to change. In the past this system was widely used but this system had some problems as someone would want to give a certain item to another person in exchange for a different item but that second person may not want the item offered to him. With this as recurring a problem, over time someone manage to find an item that would be widely accepted for other goods and services. For instance, in the past something used for trade that was widely accepted was salt. People would give salt as a medium of exchange without giving second thought to it. Over time salt stop being the item that would be used for exchanges. Gold, silver, and iron …show more content…
It was not thought of by a sole person. Over time money came as a result of people in the market all trying to benefit from an exchange. Money is a unit of pricing that allows individuals to compare pricing to that of another item. It solves problems that the barter system would bring because it is difficult to compare the value of one good to the value of another. It also is a unit of economic calculation as it enables businesses to calculate their profits and losses. Money is one half of every transaction. It also solves the problems for how employers are supposed to pay their workers. Prior to the monetary system employers would most likely had struggled paying their employees because there was nothing with a set value. Also if an employee worked at a place to extract oil and he needs to get compensated for work the employer would not pay the employee in oil. The monetary system has helped solve these