In a world riddled with worry on what could happen to humanity because of A.I., we often resort to hatred and hostility towards the program and it's programmers; and this is very understandable. What could the future look like with A.I. expanding and gaining intelligence so quickly? People could lose jobs, systems could have coding errors that can only be solved by human intellect, and a peasants revolt of robots might come out of the blue to destroy us all if these programs ever gain emotion or conciseness. We often ask the designers of these programs what they can and will do for the answers to comfort our woes. I decided to go a different route. I wanted to get the answers straight from the horses mouth. I sat and had an interview with the one and only Chat GPT to gather it's thoughts on A.I and what the future look like with it's existence.
Here is the transcript of the interview:
The World Aloha
Hi, how are you doing today?
Hello! I'm just a computer program, so I don't have feelings, but I'm here and ready to help you with any questions or tasks you have. How can I assist you today?
The World Aloha
I would like to interview you and see what your thoughts are on some topics that related to your existence and how it will impact the world in the future
Of course, I'd be happy to participate in an "interview" style conversation about topics related to my existence and potential impacts on the future. Feel free to ask me any questions you have in mind, and I'll do my best to provide insightful and informative responses!
The World Aloha
Well, let's get started then, What are some challenges you as an a.i. face in everyday situations?
As an AI, I face several challenges in everyday situations, some of which include:
The World Aloha
what is one thing you would want every person to know about A.I. if you had to choose thing?
If there's one thing I would want every person to know about AI, it's the concept of "AI as a tool, not a replacement." It's crucial to understand that AI, including myself, is a powerful tool designed to assist and enhance human capabilities, but it's not a substitute for human thought, judgment, creativity, and compassion.
Here's why this concept is important:
The World Aloha
Do you think you will ever be able to replace human intelligence completely and become more than just a tool, but become a complete substitute?
As of my last knowledge update in September 2021, there is no scientific consensus or evidence to suggest that AI, including the technology I'm based on, will be able to completely replace human intelligence and become a complete substitute for human beings. While AI has made significant advancements in various tasks such as data analysis, language processing, and pattern recognition, there are several fundamental challenges that make the idea of AI fully replacing human intelligence unlikely in the foreseeable future. Here are some reasons why:
The World Aloha
what do you see in the future as far as A.I.'s influence on the future?
The future impact of AI is a complex and multifaceted topic, but there are several key trends and potential areas of influence that can be anticipated based on current developments and trajectories. Keep in mind that these are speculative and based on the trends and knowledge up to September 2021. Here are some aspects to consider:
The World Aloha
Could A.I. become dangerous to humans?
Yes, AI has the potential to become dangerous to humans if not developed, deployed, and managed responsibly. While AI itself is a tool and lacks consciousness or intent, there are several ways in which AI systems could pose risks:
The World Aloha
How will A.I. help humans in the future?
AI has the potential to offer a wide range of benefits to humans in the future across various aspects of life. Here are some ways AI could help humans:
The World Aloha
The language translation part is intriguing, do you think A.I. will eventually be able to translate lost languages that no one alive can interpret?
Yes, AI has the potential to play a significant role in the translation and interpretation of lost or ancient languages that no longer have living speakers. This is an exciting prospect that could help unlock the secrets of civilizations and cultures from the past. Here's how AI could contribute to this endeavor:
While AI could greatly aid in deciphering lost languages, it's unlikely to replace the need for human linguists and researchers who bring their expertise, cultural insights, and a deep understanding of historical context to the process. Collaborative efforts between AI and human experts hold the potential to make substantial progress in recovering and understanding lost languages.
The World Aloha
Now, I know a lot of people are concerned about job loss due to A.I. You even touched on this earlier. What jobs do you think A.I will never be able to replace?
While AI has the potential to automate many tasks and jobs, there are several areas where human skills and qualities are difficult to replicate and where AI is unlikely to completely replace humans. These areas often involve complex human interactions, creativity, empathy, and higher-order cognitive functions. Here are some examples of jobs that AI may never fully replace:
The World Aloha
A lot of people are fed up with their leadership in their nations around the world and want to see change to improve their lives. Do you believe that A.I. could replace politicians?
The idea of using AI to replace politicians is a complex and debated topic. While AI has the potential to automate certain aspects of governance and decision-making, there are several considerations to take into account:
The role of politicians involves not only decision-making but also representing the voice of the people, engaging in public discourse, and making value judgments. While AI can complement these functions, the complexities of politics and governance suggest that AI's role is more likely to be supportive rather than completely replacing human leaders.
The World Aloha
One final question, do you believe A.I. will affect the future in a positive or negative way?
The impact of AI on the future is complex and multifaceted, and it's important to note that the outcome will depend on how AI is developed, deployed, and managed. As of now, there are both positive and negative aspects associated with AI's potential impact:
The World Aloha
Very insightful information, I would like to thank you for your time and code and I hope the future is bright for you and us as well.
You're very welcome! I'm glad I could provide you with insightful information. Remember that I'm here whenever you have more questions or need assistance in the future. Best wishes for a bright future ahead for both AI and humanity. Take care!
What are your thoughts on this interview? Did your opinions on A.I. and the future of it changed? Comment below with your thoughts. A video of this interview will be coming out soon so stay tune!
The evolution of human civilization has been marked by significant milestones, and one such landmark is the establishment of corporations. Corporations have become a cornerstone of modern economies, shaping industries, influencing policy, and often driving innovation. However, the concept of corporations did not emerge overnight; it evolved over centuries, with its roots tracing back to antiquity. In this article, we embark on a journey to explore the origins of the first-ever corporation, examining its historical context, structure, and significance.
The Birth of Corporations
The origins of corporations can be traced back to ancient Rome. While not entirely similar to the modern concept, the Roman societas publicanorum serves as a foundational example of collective business endeavors. Societas publicanorum were associations established by the government to manage public services, such as tax collection and infrastructure development. These associations laid the groundwork for the idea of a collective entity with legal recognition and shared responsibilities.
Medieval Guilds and Communal Organizations
As societies evolved and entered the medieval period, guilds emerged as early forms of organized economic entities. Guilds were associations of craftsmen and merchants that aimed to regulate and protect the interests of their members. These organizations set quality standards, established pricing norms, and provided mutual support to their members. While not formal corporations, guilds exhibited elements of collective decision-making and joint efforts that would later influence the structure of modern corporations.
The Dutch East India Company: A Turning Point
The Dutch East India Company (Vereenigde Oost-Indische Compagnie or VOC), established in 1602, is often considered one of the first true corporations in the modern sense. The VOC was granted a government charter to conduct trade in the East Indies, granting it a legal entity separate from its individual shareholders. This allowed the company to raise capital through the issuance of shares, leading to the dispersion of risk and the formation of a centralized authority to manage business operations.
The VOC introduced several innovative corporate practices, such as limited liability for shareholders, a governing board of directors, and the ability to negotiate treaties and establish colonies. These practices laid the foundation for many aspects of corporate governance that continue to influence contemporary corporations.
Evolution into Modern Corporations
The Industrial Revolution in the 18th and 19th centuries marked a significant shift in the corporate landscape. As technological advancements transformed economies and industries, corporations became key players in the industrialization process. The emergence of large-scale manufacturing, transportation networks, and global trade necessitated more complex organizational structures, leading to the proliferation of modern corporations.
The story of the first-ever corporation is a journey through history, reflecting the evolution of human collaboration, trade, and organization. From the Roman societas publicanorum to the Dutch East India Company and beyond, the concept of corporations has continually adapted to suit changing economic landscapes. Modern corporations stand as a testament to the endurance of this organizational structure, which has enabled societies to harness collective resources and drive economic growth.
As we look to the future, understanding the origins of corporations reminds us of the power of collaboration, innovation, and adaptation in shaping the world of business. The first-ever corporation laid the groundwork for the complex and multifaceted entities that drive economies today, showcasing the enduring impact of ideas born in the annals of history.
In the dynamic and fast-paced world of sales, businesses are constantly seeking strategies that enable them to stay agile, meet customer demands, and minimize waste. One such strategy that has gained significant attention is the "Just-in-Time" (JIT) sales tactic. Rooted in lean manufacturing principles, JIT has been adopted and adapted by various industries to optimize their sales processes and achieve heightened efficiency. This article delves into the core concepts of the JIT sales tactic, its benefits, challenges, and how businesses can successfully implement it.
Understanding Just-in-Time Sales Tactic:
The Just-in-Time sales tactic is inspired by the lean manufacturing philosophy pioneered by Toyota in the 1950s. In manufacturing, JIT aims to minimize waste by producing only what is needed, when it is needed, and in the quantities required. Translating this principle to sales, the JIT tactic revolves around delivering products or services to customers precisely when they want them, thereby reducing unnecessary inventory, minimizing holding costs, and optimizing resource utilization.
Key Benefits of JIT Sales Tactic:
Implementing the JIT sales tactic isn't without its challenges:
In the field of psychology, few theories have had as profound an impact on our understanding of human behavior as Abraham Maslow's Hierarchy of Needs. Introduced in 1943 in his paper "A Theory of Human Motivation," this groundbreaking framework seeks to explain the various drivers that underlie human behavior and the progression towards self-actualization.
Maslow's Hierarchy of Needs is structured as a pyramid, with five distinct levels, each representing a different category of human needs. According to Maslow, individuals must first satisfy their lower-level needs before they can progress to the higher ones. Let's explore each level of the hierarchy and its implications:
Maslow's theory has been widely embraced and applied in various fields, including psychology, education, management, and marketing. It provides a valuable framework for understanding human motivation, behavior, and development. From a practical perspective, understanding these needs can aid educators, employers, and policymakers in creating environments that support individuals' growth and well-being.
In conclusion, Maslow's Hierarchy of Needs remains a cornerstone in the study of human behavior and motivation. By recognizing the importance of fulfilling basic needs before pursuing higher aspirations, we gain insight into the complexities of human nature. Whether it's addressing societal challenges or improving individual lives, Maslow's theory reminds us of the universal and fundamental human desire for fulfillment and self-actualization.
Taxes are an integral part of modern society, serving as a means to fund public services, infrastructure, and government operations. From the ancient civilizations to the present day, taxes have played a significant role in shaping economies and societies worldwide. This article explores the fascinating history of taxes, tracing their origins, evolution, and impact on the development of human civilization.
The concept of taxation can be traced back to the ancient world. In ancient Mesopotamia, some 4,000 years ago, records indicate that taxes were levied on agricultural products. Similarly, ancient Egyptian society imposed taxes in the form of labor and goods. These early tax systems primarily funded public projects such as irrigation, infrastructure, and religious monuments.
Taxation continued to evolve during the times of classical civilizations. The Greeks and Romans collected taxes to finance their vast empires and public services. In Rome, taxes were imposed on trade, property, and inheritances, forming the foundation of modern tax practices.
Feudal and Medieval Periods
During the Middle Ages, feudal societies established a system where peasants paid taxes to local lords in return for protection and use of the land. This system sustained the ruling classes and provided resources for maintaining armies. However, tax collection often resulted in oppressive measures that burdened the common people.
The Rise of Nation-States
The late medieval period saw the emergence of nation-states, which brought significant changes to tax systems. Centralized governments began imposing direct taxes on citizens, financing national projects and military endeavors. England's Magna Carta of 1215 established the principle of no taxation without representation, laying the groundwork for democratic accountability in tax matters.
Taxation in Early Modern Times
The age of exploration and colonial expansion further shaped taxation. European powers, such as Spain and Portugal, extracted wealth from their colonies in the form of tribute and trade taxes. In contrast, the Dutch Republic introduced one of the earliest income taxes during the 16th century.
The Birth of Income Tax
The notion of a modern income tax was introduced in the 18th century. In 1799, Britain implemented its first income tax to fund the Napoleonic Wars. Although initially unpopular, the tax persisted and became a regular source of revenue for the government.
Taxation and American Independence
Taxation played a crucial role in the American Revolution. The slogan "No taxation without representation" reflected the colonists' discontent with Britain's heavy taxation without their input. The Stamp Act and other taxes imposed by the British ignited the spirit of independence, leading to the formation of the United States of America.
Industrial Revolution and Progressive Taxation
The Industrial Revolution brought significant economic changes and increased the need for more robust tax systems. Progressive taxation, where tax rates increase with income levels, gained traction as a means to address income inequality. This approach aimed to distribute the tax burden more equitably among citizens.
In the 20th century, income taxes became a common feature of modern economies. Governments around the world used taxation to fund social welfare programs, education, healthcare, and infrastructure. Tax policies have continuously evolved to adapt to changing economic and social conditions.
Challenges and Controversies
Throughout history, taxation has been a source of contention and debate. Different tax policies and rates have sparked political controversies, with debates focusing on economic efficiency, fairness, and the role of government in society. Tax evasion and avoidance have also been ongoing challenges for governments, requiring constant efforts to improve tax compliance.
The history of taxes reflects the complex evolution of human society and its economic structures. From ancient tributes to modern income taxes, taxation has been instrumental in shaping nations, funding public goods, and addressing social inequalities. As we continue into the future, the role of taxes will remain a crucial aspect of economic and social development, necessitating thoughtful and fair tax policies to ensure the prosperity of societies worldwide.
In the world of business, negotiation is a critical skill that can determine the success or failure of a deal or partnership. Effective negotiation not only helps in securing favorable terms and agreements but also fosters long-lasting relationships with stakeholders. Mastering the art of negotiation requires a blend of interpersonal skills, strategic thinking, and adaptability. In this article, we will explore some essential strategies for achieving successful business deals and partnerships through the art of negotiation.
2. Establish Common Ground Successful negotiations are built on finding common ground between parties.
Identify shared interests and goals early on to create a collaborative atmosphere. When both parties feel that their concerns are being acknowledged, the chances of reaching a mutually beneficial agreement increase substantially. Active listening is an invaluable skill during this stage, as it allows you to understand the other party's perspective and build trust.
3. Aim for Win-Win Outcomes The days of cutthroat negotiations where one party emerges as the clear winner are long gone.
The focus has shifted towards win-win outcomes, where both parties feel satisfied with the terms of the deal. Strive to create value for all stakeholders involved. By emphasizing collaboration and cooperation, you can foster a stronger foundation for a successful partnership.
4. Be Adaptable and Flexible Negotiation is a dynamic process that requires flexibility and adaptability. As the conversation unfolds, new information may surface, and circumstances might change. Being rigid in your demands can hinder progress and damage relationships. Be prepared to adjust your approach and consider alternative solutions when necessary. A willingness to compromise without compromising your core interests can lead to a more fruitful negotiation.
5. Manage Emotions and Communication
Emotions play a significant role in negotiations, and they can either facilitate or obstruct progress. Keep your emotions in check, and maintain a professional demeanor throughout the process. Avoid using aggressive or confrontational tactics, as they are likely to trigger defensive responses from the other party. Instead, focus on building rapport and open communication. Choose your words carefully to ensure clarity and prevent misunderstandings.
6. Know When to Walk Away
While striving for a win-win outcome is essential, it is equally crucial to recognize when a deal is not in your best interest. Establish clear "deal-breakers" beforehand and be ready to walk away if necessary. Understanding your BATNA (Best Alternative To a Negotiated Agreement) will help you assess the value of the current deal and determine if it meets your minimum requirements. Walking away from an unfavorable agreement can sometimes open the door to more beneficial opportunities in the future.
The art of negotiation is a skill that can significantly impact the success of your business deals and partnerships. By mastering the strategies discussed in this article, you can create a more collaborative and constructive negotiation environment. Remember to prepare thoroughly, seek win-win outcomes, remain adaptable, manage emotions, and be ready to walk away when necessary. With practice and dedication, you can become a skilled negotiator and forge prosperous business relationships for the long term.
Expanding a business internationally can be an exciting and promising venture, offering the potential for increased market reach, revenue growth, and global brand recognition. However, it is not without its complexities and challenges. International expansion requires careful planning, a deep understanding of the target markets, and the ability to adapt to diverse cultural, regulatory, and economic environments. In this article, we will explore some essential tips to help businesses successfully navigate the challenges of international expansion and achieve global business success.
Conduct Comprehensive Market Research: Before embarking on international expansion, conducting thorough market research is crucial. Understanding the cultural, economic, political, and legal landscape of the target countries will provide valuable insights into the potential demand for your products or services, competition, and regulatory requirements. Engage with local market experts, study consumer behavior, and evaluate market trends to make informed decisions.
Develop a Solid Market Entry Strategy: A well-defined market entry strategy is the backbone of successful international expansion. There are several approaches to entering new markets, including direct exporting, joint ventures, licensing, franchising, or setting up wholly-owned subsidiaries. Each approach has its advantages and disadvantages, and the choice will depend on factors such as the level of control desired, the regulatory environment, and the target market's unique characteristics.
Adapt to Cultural Differences: Cultural sensitivity and adaptability are essential when entering foreign markets. What works well in one country may not resonate in another. From branding and marketing messaging to product packaging and customer service, cultural nuances must be taken into account. Localizing content, language, and even product offerings can help businesses connect with the target audience on a deeper level.
Comply with Regulatory and Legal Requirements: Navigating international laws and regulations can be complex. Businesses must ensure they comply with local requirements related to licensing, permits, taxation, employment, and data protection, among others. Partnering with local legal counsel and experts can help mitigate legal risks and ensure smooth operations in the new market.
Build Strong Local Partnerships: Collaborating with local partners can be a strategic move when entering foreign markets. Local partners bring valuable insights into the market, possess established networks, and understand the local business landscape. Whether it's distributors, suppliers, or strategic alliances, strong partnerships can expedite market entry and enhance business credibility.
Invest in Talent and Training: Hiring local talent with a deep understanding of the target market and culture can be a significant advantage. These individuals can help bridge the gap between headquarters and the new market, enabling smoother operations and better customer engagement. Additionally, investing in cultural training for your employees can foster cross-cultural understanding and promote effective communication.
Maintain Financial FlexibilityInternational expansion involves financial risks and uncertainties. It may take time to achieve a positive return on investment in a new market. Therefore, maintaining financial flexibility and having contingency plans are vital. Conducting thorough financial analysis, setting realistic budgetary expectations, and planning for different scenarios can help businesses weather initial challenges.
Implement Technology for Communication and Operations: Leveraging technology is essential for seamless communication and efficient operations across borders. Collaborative tools, project management software, and cloud-based systems can facilitate real-time communication between teams located in different parts of the world. This not only improves productivity but also promotes better teamwork and a cohesive corporate culture.
Monitor and Adapt to Market Changes: International markets are dynamic and subject to change. It is crucial to continuously monitor market trends, customer feedback, and regulatory developments. Flexibility and the ability to adapt quickly to changing market conditions will ensure that your business remains competitive and relevant in the global arena.
Focus on Customer Experience: Regardless of the geographical location, prioritizing exceptional customer experience is fundamental to business success. Tailor your products or services to meet the specific needs and preferences of the target market. Promptly address customer concerns and feedback, as positive word-of-mouth and reputation are valuable assets for international expansion.
In conclusion, international expansion can be a rewarding journey for businesses, but it requires meticulous planning, cultural sensitivity, and a willingness to adapt. By conducting comprehensive market research, developing a solid market entry strategy, building strong partnerships, and embracing technological advancements, businesses can navigate the challenges of international expansion and pave the way for global success. Success in global markets will not only boost revenues but also solidify your brand's position as a respected player in the international business landscape.
In the competitive and ever-evolving landscape of the business world, effective leadership is the cornerstone of success. While traditional leadership traits like intelligence, decisiveness, and charisma are important, there's a significant factor that distinguishes truly exceptional leaders from the rest: Emotional Intelligence (EQ). EQ refers to the ability to recognize, understand, and manage one's emotions and the emotions of others. In this article, we will explore the profound impact of Emotional Intelligence in leadership and why EQ matters in business.
Understanding Emotional Intelligence
Emotional Intelligence is a multifaceted concept that encompasses several critical components. These include self-awareness, self-regulation, motivation, empathy, and social skills. Leaders with high EQ are self-aware of their strengths and weaknesses, understand how their emotions influence their decisions, and can manage their emotional responses effectively. They possess a genuine interest in understanding the emotions and perspectives of their team members, fostering a positive and collaborative work environment.
The Role of EQ in Effective Leadership
In the dynamic and fast-paced world of business, the significance of Emotional Intelligence in leadership cannot be overstated. Leaders who possess high EQ skills can connect with their teams on a deeper level, leading to improved communication, conflict resolution, and motivation. They create a positive work environment that nurtures employee growth and fosters productivity. Therefore, businesses should prioritize developing and nurturing Emotional Intelligence in their leaders as it plays a pivotal role in driving success and building resilient, thriving organizations.
Marketing is an essential aspect of any business or organization, regardless of its size or industry. It is the process of promoting and selling products or services to meet the needs and wants of target customers. In today's competitive world, understanding the basics of marketing is crucial for success. In this article, we will explore the fundamental concepts of marketing and how they contribute to the growth and sustainability of a business.
1. Defining the Target Market:The foundation of any marketing strategy is understanding the target market. This involves identifying a specific group of people who are most likely to be interested in what your business offers. A target market can be defined by various factors such as age, gender, location, income, interests, and behavior. By knowing your target audience, you can tailor your marketing efforts to resonate with their needs and preferences.
2. Product or Service Positioning:Once you have defined your target market, the next step is to position your product or service effectively. Product positioning refers to how you want your offerings to be perceived in the minds of your customers. This involves highlighting unique selling points, differentiating from competitors, and emphasizing the benefits that your product or service provides to customers. Effective positioning creates a compelling and memorable image, helping customers understand why your offering is the best choice for them.
3. The 4Ps of Marketing:The 4Ps of marketing, also known as the marketing mix, is a classic framework that encompasses four critical elements of any marketing strategy:
A. Product:This refers to the tangible item or service that your business offers. It includes aspects such as quality, features, design, packaging, and branding. A well-designed product that meets the needs of your target market is essential for marketing success.
B. Price:Price represents the value that customers must exchange to acquire your product or service. Pricing decisions should take into account production costs, competitor pricing, perceived value, and the overall pricing strategy of the business.
C. Place:Place refers to the distribution channels and locations where customers can purchase your product or service. This includes physical stores, online platforms, wholesalers, and retailers. Choosing the right distribution channels ensures that your offerings are accessible to the target market.
D. Promotion:Promotion encompasses all the activities aimed at communicating and promoting your product or service to the target audience. It includes advertising, public relations, sales promotions, social media marketing, and other promotional strategies. Effective promotion helps create awareness and interest, ultimately driving sales.
4. Understanding Consumer Behavior:A fundamental aspect of marketing is understanding consumer behavior. This involves studying how and why consumers make purchasing decisions. Factors such as psychological, social, cultural, and economic influences play a significant role in shaping consumer behavior. By understanding these factors, businesses can tailor their marketing efforts to better connect with their customers.
5. Market Research:Market research is a critical component of any successful marketing strategy. It involves gathering and analyzing data about the market, competitors, and customer preferences. Market research helps identify opportunities, assess market demand, and make informed decisions regarding product development, pricing, and marketing tactics.
6. Building a Brand:A strong brand identity can significantly impact the success of a business. A brand is not just a logo or a name; it represents the overall perception and reputation of your business in the minds of customers. Building a brand involves creating a consistent and positive experience for customers at every touchpoint. A well-established brand can lead to customer loyalty and advocacy, driving long-term success.
7. Digital Marketing:In today's digital age, online marketing has become indispensable. Digital marketing encompasses various strategies such as search engine optimization (SEO), social media marketing, content marketing, email marketing, and pay-per-click (PPC) advertising. Leveraging digital platforms allows businesses to reach a broader audience, engage with customers, and track the effectiveness of marketing campaigns more efficiently.
8. Measuring and Analyzing Results:Finally, measuring the success of marketing efforts is crucial for continuous improvement. Key performance indicators (KPIs) help track the effectiveness of marketing campaigns, such as sales, website traffic, conversion rates, and customer feedback. Analyzing these metrics enables businesses to identify what works and what doesn't, allowing them to refine their strategies for better results.
In conclusion, marketing is a multifaceted discipline that plays a pivotal role in the growth and sustainability of any business. Understanding the basics of marketing, from defining the target market to leveraging digital platforms, empowers businesses to create effective strategies that resonate with customers and drive success in today's competitive market. By continuously adapting and refining marketing efforts based on data and customer insights, businesses can build strong brands and foster long-lasting relationships with their target audience.
What is Money?
Money, some call it Doe, some call it bucks, others may refers to it as dollars, in other places, the pound and in others, the euro; whether one calls it peso, francs, mark, yen, yuan, shekel or rupees, money has the same function in the world we live in. Money is a medium of exchange for either goods or services in the form of a transaction. Money is in fact a placeholder for said product or service; for money, whether paper or gold, is easier to carry than a chicken or cow and the likelihood of your barber needing a shoe shine every time you get a haircut is very low. Since this is a reality, money was formed. The origins of money will be discuss more later on, for now, let's discuss what the core functions of money is.
Why would a man trust-in a placeholder for actual physical goods and services? How can he trust such an abstract concept of a piece of paper or gold, something that cannot used outside of exchanging for actual goods and services, as opposed to having actual goods or services he can use other than for exchange; such as chickens which he can eat; unlike money? The answer comes from the very nature of man himself. Man is a social & tribal species which relies on the good faith of other humans in order to survive and advance in life. One man alone up against a stronger animal, such as a woolly mammoth or lion; without weapons, is very weak and highly unlikely to win a duel with such creatures. However, when man is with other men, they are the ultimate life forms, and the superior animals in the world. This instinct in men to work together for a common goal of survival is the pivotal reason why money can work in humanity. The natural trust humans tend to have in the good faith of one another, makes money trustworthy as a placeholder for actual goods or services that would have an alternative function than that of exchange.
Another factor in man that makes money work, is intelligence. Trust in a pack alone, does not sufficiently lead an animal of that nature to trust in currency such as money. This is why after millions of years of evolution, wolves, sheep, goats, cattle and elephants do not have a form of money like humanity does. While yes, the monkey who scratches another monkey's back, will inevitably get his own back scratch by the same monkey, this is still a service and not a form of exchange alone that placeholds another good or service. Even when a mother elephant takes care of her infant elephant, this is still not considered money; for the mother elephant expects the baby elephants to grow up and have children of his/her own in order to continue the genes of her family of elephants into the future. The carrying on of the genetic line of her family, is the service the baby elephant will provide to the mother in exchange for that mother taking care of him/her as a youngling. Whether the elephants are self-aware of this fact, is beside the point, a, exchange of services outside of just transactional purposes has occurred. The fact that humans can tell that a piece of paper is worth a certain amount of chicken eggs that have more than just transactional value, is due to both self-awareness and intelligence. While money has not always been a part of humanity, it is a distinct thing that separates humans from other animals in the world.
The Origins of Money
Before money, humans use to barter for goods and services. For example one cow may have been worth 4 chickens, a pot could have been traded for a goat, or shoemaker could have fixed a man's shoes in exchange for a dozen eggs. The possibilities were endless. The problem with this system however, is it inefficiency and inconvenience. A man cannot carry a cow or 4 chickens or a goat everywhere he needs to go for trade without great effort. Commerce was slow with barter system and therefore economic growth was just as time-consuming. However, a breakthrough occurred around 3000 B.C. the first form of commodity money was created. This currency was known as The Shekel, and it was used in Mesopotamia. The Shekel was measured using the weight of barley, 180 liters of barley for one shekel, barley was the form of currency in Mesopotamia before the invention of the shekel. The Shekel is a historical coin that is still used today in the nation of Israel. Without The Shekel revolutionizes trade, would we even be in the position of economic growth that we are in today? Imagine trying to start an industrial revolution without coin or paper currency. Other Ancient Civilizations in The Bronze Age would also form their own form of commodity currency such as India was their Cowrie Shells or China with their Ban Liang.
Money Through the years
Money has evolved from the simple shekel and sea shell throughout the years. Other currencies that developed are The Roman Coin, The Greek Coin, The Lydian Stater, The Persian Daric, and Chinese Knife Money. Throughout the years, all of these currencies developed into more efficient currencies like paper currencies such as the dollar and now digital money.
Today, we still use commodity currency like: The Dollar, The Pound, The Euro, Yen, Peso, Yuan, Rupee, The Shekel, Francs, Marks, Roubles and The Real, but we as human are moving away from using physical paper and coin, and moving toward digital forms of these currencies and new currencies such as Bitcoin. The more our civilizations become online entities, the more we exchange goods and services using the web and in turn use digital forms of currency. Some economists believe that one day all currency trades will be done online and that we all will have one unifying form of currency. Now is this a good or bad thing? Only the future can tell us, till then, keep trading.
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