David Hume's Virtue Theory Of Money

“And thus came in the use of money, some lasting thing that men might keep without spoiling, and that by mutual consent men would take in exchange for the truly useful, but perishable supports of life” (S.V.47). Because money (which Locke sometimes substitutes with gold, diamonds, or silver), does not spoil, one can acquire an unlimited amount of wealth, therefore breaking the Law of Nature. Unlike the way that excess apples rot, no matter how much money one possesses, there is no way for it to go bad. It will generally have as much use today as it will tomorrow. This leads to the situation of wealth inequality, where some people possess a lot of money while others have very little.

This is because per capita measure is the measure of an approximate of individual contribution to the GDP. It can represent individual contribution and then provide an objective figure. It can help in determining the average income that suits individuals and can guide the relevant authorities in formulating policies regarding minimum wage. Well-being on individuals is based on a personal income level, and for that level to be improved, the government has to determine the approximate contribution per individual. However, the method suffers from its setbacks because in any capitalist economy, contribution to the national growth and wealth distribution is never fair.

However, what amount of self-interest can be classified as greed remains an ambiguous question and forms the main criticism to Wang et al. (2011). Supporting this view is Cameron (2003) who states that economic literature strongly appreciates self-interest and discussion on greed is far less. Some authors (Werhane, 1991) even agree that Adam Smith would view greed as antithetical to a well-run economic system. However the motivation to study the topic of greed in economists and economics education is evident and this topic has been widely written upon.

The world system theory is capitalistic in origin and it 's main purpose is to accumulate wealth for a few core nations at the expense of the rest of the world. For it to function properly it has to integrate with other nations, through agreements of trade, for it 's purpose to be accomplished. This system is currently portraying early signs of demise, and is in transition to a system of the new world order. The world culture theory is primarily focused on integrating the world into one super system. If you take into account the historical happenings of the tower of Babel, you can see that it was tried before, but failed tremendously.

ROLE OF MONEY IN MACROECONOMICS 1. Introduction Money can be seen as the medium of exchange which is acceptable while transaction is being undertaken between two parties. Some of the common forms of money are: - Commodity money: This is when the value of the good represents its value in terms of money like gold or silver. - Fiat money: This is when the value of the good is less than the value it represents - Bank money: It is the accounting credits that can be used by the depositor Money serves a variety of crucial functions in the economy and this is why it has gained an unparalleled influence in the matters of economy at micro as well as macro levels. Some of the features of money that make it so important for any economy are as follows:

Capitalism or Free enterprise system is an economic system featured by no interference from government and private ownership. Nowadays, there is no country which fully operates capitalism but in some countries, especially, developed countries, such as United States, United Kingdom and Japan employ this economic system (Yourdictionary), so they are usually considered to be the capitalist countries. However, there are several negative attitudes towards capitalism. For example, citizens tend to understand that capitalism always generates different wealth and income (Economicshelp). Moreover, a capitalist is viewed as an avaricious person who tries only to exploit profit from the consumers.

This goes along with specialization, which is key to aiding the economy. Along with specialization, Smith advocated for the use of “productive” over “unproductive” labor. Productive labor was valuable, because it increased the value of the country, whereas unproductive labor sucked up resources. Smith summed this up by saying: “A man grows rich by employing a multitude of manufacturers: he grows poor by maintaining a multitude of menial servants.” In this example, the manufacturers are productive laborers, whereas servants are

Locke says “that is that a man’s wroth represented his proportion of the world’s gold and silver”. Thomas Papillon says that money is measurable with the value of commodities in exchange and announces that the wealth of a country can be formed only by gold, but also silver currency and commodities present in the country. Edward Leigh shows that goods have more utility for humans being than money and no matter the market and the money will follow you understand that there will always be people wanting to have a good., but Locke says that the value of money is compared with the utility of the good, it’s not a price, it’s what they can do with it in the real life. Also Locke said value of gold and silver is unique and imaginary and had created the possibility of money exchanges. Humans have assigned a particular value to precious metals through their appreciation and thereby forever fixed

This essay will explain and discuss Marx's concept of wage labor and the worker's relationship with the capitalist as he describes in in 'wage labour and capital'. It will elaborate on Marx's definitions on such topics such as what wages really and labour really are. What are wages? To Marx wages are the sum of money a capitalist paid by the capitalist for a particular labour time or for a particular output of labour. On the outside it would seem the capitalist buys the workers labour with money but in fact this is in appearance only.

Main arguments involve the theory fails in providing sufficient account of its dynamic properties such as ‘internal relations’ between policy makers and the agents (entrepreneur). Their main concern is, Keynes could elaborate in his theory which ways the group of agents that participate in trade will be able to integrate with the policy makers of host country so as to ensure maintenances of his ideas of effective demand in the economy (Jespersen and Madsen 2012: 50). After criticism of Keynes’s theory there exists another group successors of Keynes identified as Keynesians and post-Keynesians. Each group has its own way of analysing trade and its impact on current account of the country. Keynesians who are also known as neoclassical synthesis develop their theory which considers some of ideas from the general theory.