Why does money exist?

 Money exists for a reason. It wasn't a creation of the wealthy to control the poor, as many people seem to think of it as. It wasn't created by governments, either. No, money was created by ancient men and women for the reason of trade. This is a discussion of the concept of money, not the history.

 You see, the most basic concept of a trade is to trade one thing or service for another thing or service. For example, if you wanted to get some eggs from Farmer Brown, you'd have to bring something to trade to him. To trade with him, you needed something of value to him. Something he either could use, or simply wanted. He probably wouldn't need a boat, so you wouldn't bring that. But he might need a plow. The question is, how many eggs is the plow worth? You and him would have to work out an equivalency rate in goods to complete the trade. Or you might help him plow his field.

However, three months later, Farmer Brown is done farming. He DOES want a boat, though. If he were to trade away 4,000 eggs for equivalent goods, he could feasibly afford one. Logically, that means he should be able to give the boat builder 4,000 eggs. But what would that builder do with them before they went bad? What if the boat builder simply wanted something of value he could keep and store, and Brown couldn't get it for the eggs? Enter money. Brown can sell the eggs for the equivalent in money, and use that money to purchase his boat.

Finally, let's say you were that person wanting eggs from him. You have nothing of value for him in material goods. You can, however, reap a mean crop of wheat. Between the two of you, you work out how much this task is worth to Brown. He gives you the eggs you need when you finish, in exchange for your labor. This is also trade. If money were involved, he'd give you that instead. In both cases, you are being compensated for your time and services, or paid. Its similar to when I fix a friend's computer for them, and they pay me with dinner.

Money is nothing more than a medium by which trade is conducted, and people are compensated for their time and services. It eased the move of goods and services through the world by leaps and bounds, and for awhile, each piece of money was usually worth the material it was printed on. That value was determined by how much work was required to produce that bit of money. Now, in a free market, the likes of which didn't really exist for a long time, the flow of money is constant, from one place to another. Market values, availability, and other factors define how much a currency is worth, and how much it is worth against foreign currencies. Value is defined by how much people want it and how much is available, and that sets it against money. Some people do overcharge, but that's part of the system. Free markets require free trade, which really demands the existence of money. And in the end, it allows free speech, freedom of expression, and things like that. But I digress.

Money is based on a theory of value. To eliminate money is to attempt to eliminate a simple concept of value. To eliminate the concept of value of entirely is to eliminate free trade. To eliminate free trade is to return us to the days of tribalism and serfdom. This, in turn, eliminates division of labor. Ludwig von Mises explores this extensively in his economics works. Our society is entirely dependent on division of labor. Our computers, websites, cars, food, and other items we buy at the store require it. To eliminate division of labor is to eliminate modern society. Money is one of the core founding concepts of this. Otherwise, how do you determine how much the work of a carpenter is worth against the work of the welder when you're building a building? Or the electrician? You can pay them in meals and housing, but historically, this was tantamount to (or usually became) indentured servitude and slavery, and only one of these allowed the subject to escape (and still paid him). Or you can return to self-sufficient farms and tribes, but even then, while everybody is economically equal, you're now subject to those who simply are more popular, have more power, or are stronger than you, like tribal chiefs. Or bigger tribes.

Money is essential to a free world. To eliminate money is to attempt a return to the dark ages of history where warlords and despots ruled the people with total power.