Written by: Spandan Bhattarai - 21127, Grade XII
Posted on: 11 October, 2020
If we take out paper bills or swipe a credit card, we indulge in most of the transactions in the money of everyday use. Indeed, the backbone of the economy around the world is money. Currency refers to paper money that is in circulation or coins. In fact, however, money is just a small piece of the monetary economy and only one factor when looking at the overall supply of capital. Indeed, much of the money today remains as credit money or electronic records deposited in databases in banks or financial institutions. But even, the bread and butter in day-to-day purchases is money.
So, what exactly is the worth of our modern money, whether it's an American dollar or a Nepali currency? Unlike early coins made of precious metals, much of what is minted today doesn't have any economic worth. However, it still maintains its appeal. In the case of "representative money," each coin or note can be exchanged for a fixed sum of a commodity. But, what would happen if the money stopped existing?
First, the world economy would crash and everyone would have to start again from scratch. It would create chaos, riots, and reckless abandon setting in over the first few days. Consider the at times the scenes of a Black Friday sale then imagine that everything in every store in every country suddenly became available not just at a very low price but at no charge whatsoever. As part of the pandemonium, people would fight and perhaps even kill each other for various goods. Health care products and medicines would probably be in particularly high demand while grocery stores would also quickly be pillaged with many resorting to violence to secure an adequate amount of food supply. The psychological impact would extend far beyond in-store scuffles though life savings would suddenly be lost and regular incomes would disappear regardless of how an individual may have accumulated their wealth through greed, dishonesty, or genuine hard work, they now are without the fruits of their labor. In 2016, India attempted a part demonetization by invalidating certain denominations of the bill but the move reportedly prompted people to die of heart attacks after learning of their change in fortune with others committing suicide. There were also some cases of people refusing to work as faith in the value of their wages plummeted. Consider a similar reaction on a global scale and the catastrophe widens with potential for doctors, nurses, police officers, and all types of emergency service workers to walk away from their roles. According to reports, in India’s case, there were examples of patients dying because the hospitals refused them service amidst the panic. As harsh as it seems, it’d be a probable outcome over the world. While a monetary wipeout would see the rich suddenly rendered penniless and destitute, it could be a different story for poorer people on some levels at least as money would no longer hold meaning in their lives either major debts would be cleared and financial equality should set in given that everyone would have zero finances to speak up that’s not to say that prejudice based on wealth would disappear entirely. In fact, it could be intensified as those who had previously had more money might seek some sort of recognition for their financial history. All things considered, the initial response to a moneyless world would be hectic and probably more negative than positive.
Ref: https://www.watchmojo.com/video/id/24178
