In their book ‘The invention of tradition’ by Terence Ranger and Eric Habsbaun, the authors say that invention of tradition had been evident across time and places. The invention of tradition becomes more frequent when the old traditions are not able to effectively address the demands of the rapidly transforming society. The old traditions have to be eliminated when they are not sufficiently flexible or adaptable to the current needs of a society. The rapid and large changes on the demand and supply scenario in the last two centuries had warranted the invention of newer traditions during this period. However old traditions would continue to exist when their incompatibility is unperceived. Such traditions would continue to produce unintended effects that may not be attributed to it.
Today almost all nations across the world are facing economic difficulties. Huge budget deficits have become the order of the day.
Governments have to spend a lot particularly on infrastructure, health and education, even as they continue to increase spending on interest payments, against conservative tax incomes.
Where are we leading to? Poverty levels are increasing at high rates, and each day global poverty levels a hitting a new high. There is famine and drought like conditions for many, despite our mother earth providing all for everyone.
We can’t continue this way for too long. While we introspect how the future economy should be, we should realize the origins of organized economy and currency.
The concept of commodity to money was a sophistication of commodity to commodity trading, when the offered commodities weren’t suitable to one party. Because the exchanged commodity weren’t suitable to one party, there was a need to use this commodity value for a different commodity, or at a different time. This was also the case when labor was exchanged for commodity.
When man conceived the idea of currency, it was tended as a token of labor. A 5 cent coin had an appropriate labor value in it. That is, the 5 cent coin at hand can fetch you any labor appropriate for the said amount. Currency was thus intended to reflect labor benefit, facilitate use of this benefit, anytime anywhere.
These concepts have now become irrelevant to contemporary times. The prices of commodities were fixed based on the labor value required to bring it to the buyer, but today this concept is irrelevant. The prices are more tied with demand, rather than the effort required for bringing it to the buyer.
Today we experience the cumulative results of these approaches, which were actually not originally intended when man conceived the idea of money. Probably the entire philosophy and all intentions behind the concept of money is today outdated.
Only labor and commodity could earn money. Today man can make money without labor or commodity. The fundamentals of labor, commodity trade have come a full circle, leaving a major part of the world in poverty and uncertainty.
We need to change all this, the sooner the better. We have a big task at hand that requires to be urgently resolved. And as the men responsible for bringing this change will not budge, because their personal interests are tied to it, they must remember that they would be forced to do it someday.
That someday would probably be the day, when food for thousands is hinged to this change.
