The True Nature of Money: Why We Pay for Everything
Why does money exist in our economy but not in the natural ecology? This article explores the fundamental difference between the ecology and the economy, and why certain items can be free in nature yet sold for money in human society.
Introduction to the Natural Ecology
In the natural ecology, nothing costs money. The air we breathe, the sunshine we bask in, the water we drink, and even natural rain are all freely available. It is neither technically correct nor accurate to say that everything costs money in this world. However, it is true that all the items sold in the economy do cost money.
The Role of Humans in the Economy
The key difference lies in the fact that if something is sold in the market, it is because a human seller must be compensated for producing or acquiring what he or she is selling. This is because humans must be rewarded for their efforts and resources.
Natural vs. Unnecessary: Survival Essentials Beyond
Biological survival necessities, such as food, water, and air, must be freely provided by nature. These basic needs are not just necessary but also vital for the existence of life. Anything that is not essential, such as clothing or services, is produced or provided by humans for non-essential purposes.
The Paradox of Food in the Economy
A significant paradox arises with food. Food is a necessity of life, yet in the economy, people pay for it. This is due to the human tendency to disobey the natural law of subsistence, which is to produce what one consumes. In the natural ecology, food is available free of charge, but in the economy, people must consume what others produce, and they must be compensated for this production.
Insights from the Statistics
Take a look at the global food production and consumption figures to understand this paradox better. In 2020, the world had a population of 7.8 billion people who required around 1.56 billion tons of food grains. Yet, the world produced a staggering 2.72 billion tons of food. This discrepancy is a clear indication that there is no shortage of food in terms of quantity, rather, the issue lies in the production and distribution methods adopted in the economy.
The Impact of Natural Land Resources
The earth has approximately 14.9 billion hectares of land, of which 5.1 billion hectares are suitable for growing food. However, only 0.2 billion hectares are necessary to feed 10 billion people. There is still more than 90% of the planet's land that remains unused due to an overabundance of land relative to the need. This excess land reinforces the idea that the problem is not with scarcity but with the economic mechanisms that lead to food waste and excessive production.
Conclusion
The existence of money in the economy is a reflection of human labor and resource allocation. While the natural ecology provides essentials for free, the economy thrives on the exchange of goods and services that humans produce. Understanding this dichotomy is crucial to appreciate the true value of money and the importance of natural resources in sustaining life.
By recognizing the fundamental differences between the ecology and the economy, we can better address issues such as resource distribution, sustainability, and economic practices that lead to waste and inefficiency. This understanding can help us make more informed decisions and create systems that promote both human progress and environmental sustainability.