Wednesday, April 29, 2015

Considering money flows

A key idea of mine is that money is an abstraction enumerating a favor, which allows for limited social trust, versus the deep trust of close community, like family.

These are opinions. Plenty of people have lots of ideas about money, and it's a very important area which touches the lives of all human beings in our modern world. Not claiming expertise, but am curious, and talking out my own ideas. And there are plenty of money experts out there for someone looking for help with money matters. If you came here looking for that, sorry, as here I'm speculating.

Looking at how money flows legally I've found my theorizing focusing on three areas:

1. In contract flows.

2. Out of contract flows.

3. Taxation

And with out of contract flows would include community flows, which covers family, like parents paying for college, and also charity. And charity would cover where anyone gives money to someone else just to help. And that's it for out of contract flows.

Almost everything else is in contract flows I'm theorizing, where importantly contracts limit obligation, which goes back to limited social trust.

Will state without proof that money, according to this theory, for the most part flows around the globe in contract, where the most basic is the general social purchase: Someone has something you want for sale, and you pay some monetary amount in exchange for it.

With the general social purchase, you can have a very limited nonverbal social contract, all the way to a voluminous written out contract signed by both parties.

And that's it for the general social purchase.

The other basic type is the general employment, where you agree to exchange effort and time for money which may be paid on various terms, like an hourly rate, or a salary, or a set amount, or a set amount with a bonus, or a potential bonus.

And that's it for general employment.

Taxes flow money from citizens to governments.

Loans can be out of contract or in contract flows, and I think are already covered, but felt I should specifically mention them, to note I did think of them.

That covers what I find to be the most relevant variations of money flows for the purposes of this post.

James Harris
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