THURSDAY, JUNE 6, 2013
DEFINING MONEY

How do you define money? According to Ludwig von Mises, money is the most valuable commodity. Overtime, we’ve put value in a number of items.

Money through the Ages

10,000 years ago Cattle, vegetables, and grain

3,200 years ago Shells, beads

3,000 years ago Gold and bronze

1,500 years ago Coins and paper backed by valuables like gold

Today Unbacked paper and coins

The longest and most widely used form of money was the cowrie shell.

VALUE OF THE DOLLAR

The value of the dollar changes over time due to inflation, which decreases purchasing power. Check out how much the dollar was worth over the past 100 years.

A dollar in 1913 would purchase 25 times more than today.

A dollar in 1923 would purchase 14 times more than today.

A dollar in 1933 would purchase 16 times more than today.

A dollar in 1943 would purchase 14 times more than today.

A dollar in 1953 would purchase 10 times more than today.

A dollar in 1963 would purchase 8 times more than today.

A dollar in 1973 would purchase 5 times more than today.

A dollar in 1983 would purchase 2 times more than today.

A dollar in 1993 would purchase 1.5 times more than today.

A dollar in 2003 would purchase 1.25 times more than today.

HOW IS MONEY MADE?.

Where does money come from today? The physical bills and coins come from the Mint. The process for printing money involves artistry, quality control, and manufacturing.

Bills are designed by artists. Designers must incorporate elements like the appropriate president and traditional images. More than one artist makes a design and a final piece is chosen.

The design is turned into printing plates.

The plates are used to print the bills at a rate of 10,000 sheets per hours. Bills require several printings to include all the details and colors. Pages are dried 72 hours between printings.

Bills are printed in large sheets that have to be cut into individual pieces of money.

The bills are packaged and shipped to various banks and financial organizations.

****A call out for this section or an extra piece of information: During the printing process, a person manually reviews a sheet from every 500 or so pages to ensure quality of the printing.

Sources for information:

  1. http://www.pbs.org/wgbh/nova/ancient/history-money.html
  2. http://www.usinflationcalculator.com/
  3. http://www.moneyfactory.gov/uscurrency/theproductionprocess.html

Leave a comment

Your email address will not be published. Required fields are marked *