The History of Money How did money come

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The History of Money $ How did money come to be? Using terms and

The History of Money $ How did money come to be? Using terms and events very loosely. More like the History of Money (sort of…)

Economic Origami �Fold paper in ½ Hamburger �Fold Paper in ½ Hamburger �Use to

Economic Origami �Fold paper in ½ Hamburger �Fold Paper in ½ Hamburger �Use to write down notes (flowchart/timeline style) �Use notes to write a short sort of history of money �Look things up on internet to get help/ideas �Illustrated Comic Book like item �Specs to follow in a day or so…

State of Nature Prehistoric Period What was life like before written history? How did

State of Nature Prehistoric Period What was life like before written history? How did people live? What does state of nature really mean? Good Questions: Listen to Meder and write something down regarding it here. No Rules: No right or wrong= State of Nature Life very dangerous: Caveman makes first trade You protect me QPQ and I protect you Trade makes people better off.

12, 000 -9, 000 BC Barter System Dual Coincidence of Wants very inefficient. I

12, 000 -9, 000 BC Barter System Dual Coincidence of Wants very inefficient. I must want what you have at the same time you want what I have in trade. Divisions of Labor develop Problem: Problem: Value Perishability Divisibility Portability Equality

@1500 BC China: Representative Money QPQ (Quid Pro Quo) Seashells used to help equate

@1500 BC China: Representative Money QPQ (Quid Pro Quo) Seashells used to help equate the value and equality of one good for another. Made trade easier and more efficient Began to solve the dual coincidence of wants issue. Began to solve the value and divisibility issues too Created counterfeiters Bandits came (developed) Police needed

@ 900 BC: Cities Develop Trade Centers �Deposit Goods for later sales �Keep records

@ 900 BC: Cities Develop Trade Centers �Deposit Goods for later sales �Keep records of who brought and traded what with whom �Stored excess goods for later availability �Roots of Banking System (Deposits and Debts) �Benefits limited to that City/Market

@500 BC Commodity Money �Has intrinsic value (value in and of itself) �Limited quantity

@500 BC Commodity Money �Has intrinsic value (value in and of itself) �Limited quantity �Scarce not just lying around �Livestock, metals, grains, salt, etc. �Creates need for police (military) Highwaymen (land pirates)

@900 AD Checkable Deposits � Trade-Centers developed record keeping of trades � First form

@900 AD Checkable Deposits � Trade-Centers developed record keeping of trades � First form of paper money (checks) � Check (value based upon previous deposit like meat) � Not Uniformly acceptable (where is deposit) store credit � Limited to a specific place or by reputation good v bad

@1400 -1930 AD Gold Standard �Developed around the Renaissance �Travel much easier due to

@1400 -1930 AD Gold Standard �Developed around the Renaissance �Travel much easier due to developed roads �Effort to stabilize currency around the world– Trade �Imperialism: seeking to gain by conquering others �Measure everything against Gold

The Development of Consumer Credit �Sears & Roebuck Company Catalog 1888 �The Amazon. com

The Development of Consumer Credit �Sears & Roebuck Company Catalog 1888 �The Amazon. com of its day �Stabilized prices for farmers of U. S. �Established revolving Credit �Durable goods first (Washers, Dryers etc. ) �Pay premium plus interest, take back and resell if delinquent �Spawned Consumer credit