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Challenges of Economy
The major challenge of today’s economy is to create a value which is cognitive in nature. Because that is the only value which can be protected and bank can issue a note of promise on behalf of that. Everyone needs this note of promise which we call as cash, though we understand this as money but it is actually a document of lending. So here the question arises that what is money? Money is actually the value of the skill for which the note of promise may be issued. So is service the money? May be not if we think that the service belongs solely to the servant. Because this is a truth that servant will die one day.
But will the service die? Probably not. But only if passed on to the present society, so that it may survive in future as well.
We know that currency is a note of promise. Promise that the value or the money(here we are calling the service as the money)will be safe in the hands of consumer. Isn't this strange! Safe In hands of consumers? Here consumer is the bank of values, producer creates the money, so what role does the actual bank which we know as bank, play in this?
Money produced by the producer is safe in the hands of consumer. Why the producer himself does not guard it? And whatever producer is handing off to the consumer is that really the money? Because we said that money is the service that does not die. Is the producer really giving the value to the consumer, the service which can never die.
And what about the item or the product which the consumer recieves?
Lender or the buyer gives the document of lending(i.e cash) to the producer for his skill, Even his product houses the secret of his skill. If someone has a skill of making a nice Indian curry then even his product when served to the customer can reveal his skill to the consumer. So he is lending away secret of his skill to the consumer in exchange of note of promise issued by bank. We usually think this of as money but as I already said that it is the document of lending. The guarantee that it covers simply mean that consumer will not waste his skill and keep it safe and when the seller will ask for that skill or service back he(consumer) will return it and will take his bill back. But does this really happen ? Can we say that we are living in a just and fair economy ? May be not and this is why we have a heap of debt on the whole world. We really need to repay what we consume and building such an economy should be the major challenge of the economy.