The Monetary System and Its History Essay

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The essay “I want the Earth Plus Five Percent” by Larry Hannigan details how the monetary system came into existence. This system was gradually developed to solve the challenges encountered in using the barter systems. However, many people did not realize that this system caused even bigger problems, such as the manufacture of poverty (Hannigan, 1971). I had never really thought about how the charging of interest rates means that the economy will always be in debt. The concept of charging interest creates scarcity of money because people are required to pay more than is available in the economy. After reading the story, I understood why capitalism is a predatory system; it propagates all the problems caused by using money as a medium of exchange and store of value.

The story fits perfectly in the context of modern society. For instance, the essay explains that the people with the greatest ability to create wealth own and operate news media, including newspapers, T.V. and radio stations, to control the kind of information released to the general public (Hannigan, 1971). This is also true in the real world; the billionaire Jeff Bezos owns The Washington Post newspaper. Additionally, unprecedented levels of poverty are being witnessed in many parts of the globe, especially following the coronavirus pandemic. The gap between the rich and the poor continues to grow as the rich devise new ways of making money off the poor. The story is titled as it is to signify greed inherent in the monetary system. The controllers of this system would impose a tax on the earth if they could despite the fact that this interest cannot be paid; there can never be 105% of the earth. Human beings will continue to suffer indebtedness until this system is overturned.

Reference

Hannigan, L. (1971). I want the earth plus five percent. EPDF. Web.

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