I took an interesting historical detour recently to read about the gold standard. Up until 1971, US dollars, by law, could be traded for precious metals. Since then, they are simply money because we agree they are.
That’s a shocking simplification. (And I encourage you to gather more complete details before writing a paper or devising an economic policy based on that information.) But when you think about it, money is a shocking simplification, too. A piece of paper, or a number stored on a computer represents — all kinds of things. The moment-by-moment labor of a factory seamstress. The power to purchase a digital watch. Sunlight gathered by leaves and stored as chickpeas, then processed, trucked, and waiting in your grocery store as hummus. The electricity and internet access that allow you to read these words.
Money is energy, neatly packaged so we can trade it around. The economy is a measure of how much money we trade around — an abstract measure of an abstract representation of everything we exchange with each other.
Even though we haven’t had gold standard money for over three decades, we still talk about the gold standard as a measure of quality. If it’s gold standard, it’s reliable, solid, rich, and strong.
Right now, many of the official measures of the economy look bad. Remember that the economy is several measures of abstraction removed from you and what you do every day.
So I invite you to create your own gold standard economy. Find out what the people in your community want and need, and make it for them. Build and serve to the gold standard, and trade your creations for what you want and need. Use some money to make the trading easier.
Ultimately, the real value is you.
I’ve been interviewed!
Ever wondered what my favorite word is? Or where I get my ideas? Well, so did Flying Pen Press! Their questions and my answers are here:
or the tiny version: