When money interferes in a relationship, it changes the dynamic. Social norms and market rules come into conflict. For example, imagine a couple on a date, and when the man takes the woman home, he says, “I spent $100 on you today.” Suddenly, a romantic relationship shifts into a market transaction. Messages like “Next time, it’s your turn to pay” and “I did this for you today” appear. The benefits of social norms differ from those of market rules. Both are necessary, but the relationship is affected by when, how, and to whom they are applied. A person who fails to strike a balance between these two aspects risks damaging relationships and harming communities. - Joseph’s “just my thoughts”
Value in Kind (VIK). Refers to the spot value . We pay money to buy the goods we need, which represents an exchange of goods for currency. However, since money is also a kind of good, it has a relative value that constantly changes. That’s the price. When the price of goods rises, it indicates that the value of money in relation to goods declines. This phenomenon is called INFLATION . If other goods exchanged for goods experience a greater value increase than currency, the seller finds it more advantageous to transact using those other goods rather than currency. We prefer to exchange currency in transactions because it is a government-guaranteed compulsory means of exchange . The right to exchange anything constitutes compulsory circulation power . However, this is the only value of money. If the price of gold is rising significantly, and you can exchange gold for goods, it becomes a better option for producers of goods to trade in gold instead of money. Originally, the pre-currency...