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Why do people have to work so hard for money?
Question Date: 2004-02-03
Answer 1:

Money is a very critical invention of mankind which was designed to provide a method by which one could exchange it for desired products and services.

Prior to the invention of money, a system was in practice known as bartering.

An example of bartering is for instance if you have a cow I want, I could sit down with you and offer you something I own in exchange for the cow. It is possible that if I owned other livestock I could offer you several chickens or a hog in exchange for your cow. If we reach an agreement under the barter system to obtain your cow, I would give you whatever items of mine you felt to be the true worth of your cow and compensated you. In order to make your decision about the true worth of your cow you should take into consideration many factors about the cow including those related to how much work you have already invested in the raising of the cow. Other factors might include: How old is the cow? Do you really want to sell the cow now? What are other cows just like your cow and as healthy as your cow worth?

The barter system works really well in a small village but could become extremely complicated to operate if there were language and fair exchange policies to consider. Money was invented as an attempt to remedy this situation by providing a somewhat level playing field.

The worth of a peso in reference to a dollar is easily calculated and is referred to as an exchange rate. Banks and government institutions establish, regulate and monitor the exchange rate in every country in the world. So, if a cow is worth 10,000 pesos in Paraguay, the value in dollars in the United States can be immediately calculated.

As previously mentioned, the amount of work put into a commodity is a large part of what must be considered if the item is to be sold. A robust cow raised by an industrious and dedicated farmer will probably be healthier and bring a much higher price than a thin cow raised by a lazy farmer.

Hard work is believed to be the key to having more money to purchase goods. This is known as the "work ethic". An individual who has a high work ethic is viewed by society as productive because he works hard and is motivated by both the desire to do a good job and receive money for his efforts.

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