As an Econ major in college - I liked it so much I went to grad school and got a Masters in it, too - I took a LOT of economics classes, naturally. In my first class in college, I remember one of the main rules of economics: money only has value as far as people believe it has value - otherwise it is just paper. That has always stuck with me.

If we, as Americans, start believing our money is worthless, it will be. Period. There is nothing we can do about it. Just think back to Confederate money. The Confederate States of America believed their money was valuable so it was. Then towards the end of the Civil War, they believed it was not valuable so it wasn't. Of course, it isn't THAT simplistic, but you get the idea. Similar happenings occurred in Germany after WW1 and was a major factor towards WW2, also. And again in Russia after the fall of Communism. Both of those countries survived, but their money was devalued for quite awhile largely based on their citizens' perceptions.

It makes you think, doesn't it? If something were to happen that made America crumble (now, don't panic as that would have to be HUGE and not likely in the near future), all the money and savings in the world would mean nothing. It is what WE, collectively, value it at.

Just trying to get everybody to think on a Wednesday afternoon!! lol

That piece of wisdom always stuck with me and, at times, helps put things in perspective.

You're an econ major? Cool. I'm an anthro major. Not much good it does me now.

When I get stressed about money, I just tell myself, "It's just paper. Little bits of paper. I have less paper than I did before. But it's just paper." It gets me through the hard times.

But I love your thoughts.

Teach us more econ stuff. I love that kind of stuff.

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Most people find out what I majored in and then that I got a Masters and say something like, "I took economics because I had to. I hated it."

You are one of a kind then, Kathryn! Most people start glazing over, which is why I hesitated to put this here. My nerd side is showing! I have just been thinking lately.

I was a math nerd engineering major. Does me a lot of good as a SAHM. I don't thing Kathryn is one of a kind on these boards. I took an Econ for Engineers class, loved it one of my few 4.0s in College.

I think that Money is like anything else you give it values. Money is a tool by which we can give value to goods because people believe that it has value. It is much easier to use a money system then going around trading say a hand knitted sweater that you made and provided for the groceries that your family needs.

Great thoughts though. Look at what happened to the half pence when they stopped using them

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Kimberly Proud Mommy to Bethany Rose April 2006 &

Organizer of the Coupon Clippers of Tacoma

As a former Psychology grad student, I can tell you that perception is nearly 100% of one's reality... some more *deep* food for thought!

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As a former English major ... ah, I really have nothing to add unless you want to talk about a dead poet but I thought I'd put in my degree as well!

haha...

Hey, that gives me another idea for a poll!!! lol

Ember15, you dont' want to know what we called Econ for Engineers. It wasn't nice. . . We hated it when we got assigned to teach that class as grad students.

lol...i DO want to know, because I took it too! lol....i have to say that I hated that class, but if we had had a better teacher (a guy that did more than steal his teaching info from anotehr teacher, and one that could actually ANSWER your questions, instead of sending you to that said teacher that you don't even know), we might have liked it more. However, our engineering econ teacher wasn't even an econ teacher, he was an engineer who didn't make it. If we had an actual person who KNEW economics, that would have helped.....

i wish we would return to a gold standard and that the government would take back control of the money and disolve the Federal Reserve (privately owned bank) but alas....


Value of paper money
The inherent value of use of paper money is almost zero, but when it is measured in value of exchange, it becomes the manifestation of labor. It can then be traded for services or goods based on the exchange rate of currency from monies owners to goods/services sellers. Additionally, paper money has an intangible value that is directly related to the condition of need of its bearer. While a one hundred dollar currency may be inconsequential to a person with little material need, the same may be the governing factor with regard to homelessness, health, and even life for another with lesser means, hence, priceless. Simply put, paper money is valued at the maximum amount of consumable goods for which it can be traded, either directly or indirectly.