Sunday, February 9, 2014

The sanctity of contract

Money is a bearer contract between an individual and the labour force of a country. The government guarantees that the contract will be accepted by any part of its labour force.

It also guarantees or tries to make an environment where these contracts take part, by having an army to protect a territory against attack, by building roads and other infrastructure for the activities to carry on smoothly.

This is what gives money value - the certainty that it will be accepted within a certain territory as a labour contract.

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