Stone Money Rewrite—phillyfan321

Money: What is it Worth?

P1. Every country in the world has some type of currency. The United States and Canada use dollars, the United Kingdom uses the pound sterling, and most of Europe uses the euro.  Each of these currencies have different values and ever changing exchange rates. For example, when I went to Canada this summer one US dollar was worth more than one Canadian dollar and this got me thinking what is the difference? I was not complaining because the exchange rate was in my favor but I was very curious.  One question that kept going through my mind was “Can one US dollar purchase more goods that one Canadian dollar?”

P2. One way to simplify how one values currency is to compare it to cows and chips. When I was in high school I remember hearing about bitcoin for the first time. At first I had no idea what a bitcoin was and my first question I asked my friend was “Which country created bitcoin?” The correct answer was no country did, but it was created by someone and a bitcoin is not an actual coin. In the article, “Bitcoin Has No Place in Your – or Any – Portfolio”, by Jeff Reves, one important thing about money is that a bitcoin is that it is not owned or backed by any bank . So a bitcoin’s value is based off what it is traded for in the market exchange. The value of a bitcoin can vary from day to day just like a stock. With a bitcoin, it literally is worth what people say it is worth which makes me wonder if a bitcoin really worth anything in real value. It is important to note that people use many different currencies to buy bitcoins, a few examples are United States dollars, Canadian dollars and the euro. No country backs the bitcoin as an official currency and it is not backed by gold or anything of value. So if the local 7/11 store charges one bitcoin for a bag of chips then that one bitcoin is only worth a bag of chips. One week later a farmer charges half a bitcoin for one cow. So now the value of a bitcoin may have changed, depending on what people value as more important, a cow or a bag of chips. So how does society value what is more important? A bag of chips could be worth more than a cow to some people, but to others a cow can be more valuable.

P3. While the United States currency is officially the US dollar, some countries have more unique currencies. One example of a country that uses a unique currency is the island of Yap.In the article, “The Island of Stone Money“, by Milton Friedman, it is told that the Islanders of Yap used stones as their currency . The interesting about is that some of the stones were too large to carry around in a pocket, so they were left somewhere and people would just know who owns the stone today. In a way it is not too different than the money in our bank accounts. I know the money is in my savings account but I cannot see it unless I went to the bank and withdrew it.Another concept that I found interesting in the article,  “The Invention of Money”, by Ira Glass, was that mind money is physically real but only worth what society values it for. One example would be if someone says “I will give you one dollar for the soda,” then one dollar is worth a soda but if a different person said “I will give you a soda for $3,” then one dollar is not worth a soda. Money is what society says it is worth, but the value of the United States dollar is almost universal because most stores will not charge someone more than two dollars for a soda .

P4. While I am not an economist or economics major, I know how bad inflation can be. From the 1950’s to the 1980’s, Brazil had a chronic inflation problem, according to Channa Joffe-Walt in the article “How Fake Money Saved Brazil.” The problem in Brazil was that prices kept rising and people had no faith in money, also most people were probably not  saving their money because over time it would lose its value. If I lived in Brazil at this time I would have no faith in my country’s money system. Rampant inflation makes people feel that their money is losing value every day because in a way it is. Currently, I do have faith in the United States dollar because it is considered a stable currency worldwide and while the value of the dollar has inflated, the inflation rate is very low.

P5. Over the last two weeks my concept of money has not changed, although I do feel that I have learned a lot more about currency and some aspects of economics. I still do have faith in the United States dollar. I know it is a stable currency and at least in my lifetime has not experienced rampant inflation. Although I understand how the Yap island currency can be similar to the United States currency today. An example would be that when I got paid this summer I was paid via direct deposit, so I knew I had the money, but I did not physically have it in my possession. Another reason I had faith in the money in my bank account was that I used it to pay off a credit card bill so I know the numbers in my bank account have value. If my credit card was not paid off my credit score would go down and I would be charged even more money, so the numbers in a bank account are important. In brief, I believe money is very valuable and a necessary thing for society to thrive.

Works Cited

Friedman,Milton. “The Island of Stone Money”. Hoover Institution. February 1991. Web.

Glass, Ira. “This American Life.” 423: The Invention of Money. N.p., n.d. Web. 13 Sept. 2016.

Joffe-Walt, Chana. “How Fake Money Saved Brazil.” NPR. NPR, 10 Oct. 2010. Web. 13 Sept. 2016.

Reeves, Jeff. “Bitcoin Has No Place in Your – or Any – Portfolio.” MarketWatch. N.p., 31 Jan. 2015. Web. 13 Sept. 2016.

2 thoughts on “Stone Money Rewrite—phillyfan321”

  2. You didn’t post a Stone Money essay, PhillyFan, so this is my first chance to comment on your work on this topic. It has a title and a credible Works Cited, plus compliant informal citations, so we can jump right into a consideration of your Argument and Rhetoric.

    As you know, you’ll receive initial grades in four grading criteria: Argument, Rhetoric, Mechanics, Scholarship (ARMS). Grades can always be improved by revision. To understand your grades, you need to know your Grade Code, which I shared with you in class MON SEP 19. I’ve numbered your paragraphs for easy identification. The Writing Center offers free peer-to-peer writing instruction appointments to suit your schedule. And additional feedback is always available from me upon request.

    Argument (Grade S)
    Let me start with an observation about what separates the good essays from the best. Good essays make strong arguments, express them clearly, and provide adequate support. The best essays do all of that but economically and elegantly. They don’t waste time or words. They pare down their claims to add power, making time and room for more strong arguments in the same space.
    Your P1 makes a good opening argument. To make it the best, you’d have to recognize and cut the fluff. Your draft:

    Every country in the world has some type of currency. The United States and Canada use dollars, the United Kingdom uses the pound sterling, and most of Europe uses the euro. Each of these currencies have different values and ever changing exchange rates. For example, when I went to Canada this summer one US dollar was worth more than one Canadian dollar and this got me thinking what is the difference? I was not complaining because the exchange rate was in my favor but I was very curious. One question that kept going through my mind was “Can one US dollar purchase more goods that one Canadian dollar?”

    A more economical draft:

    International travelers know that money is fluid and abstract. They know that their home currency can “buy” more or less foreign currency from day to day. Some travelers even choose their destinations based on where “the dollar is strongest.” If every currency was based on a similar value system, this would not be true, which makes a thoughtful person wonder, “Why does an American dollar buy more goods than a Canadian dollar one day, and fewer goods the next day?”

    This version makes good use of every sentence instead of wasting the first two on the observation that countries use different currencies. What I’m trying to illustrate is that there usually exists a more direct way to make your point.
    Apply that lesson to this meandering set of sentences, PhillyFan. I’m confident you’ll find a way to economize on this explanation:

    one important thing about money is that a bitcoin is that it is not owned or backed by any bank . So a bitcoin’s value is based off what it is traded for in the market exchange. The value of a bitcoin can vary from day to day just like a stock. With a bitcoin, it literally is worth what people say it is worth which makes me wonder if a bitcoin really worth anything in real value. It is important to note that people use many different currencies to buy bitcoins, a few examples are United States dollars, Canadian dollars and the euro. No country backs the bitcoin as an official currency and it is not backed by gold or anything of value.

    What follows sounds like an illustration of your point using recognizable physical objects (cows and chips). But is it?

    So if the local 7/11 store charges one bitcoin for a bag of chips then that one bitcoin is only worth a bag of chips. One week later a farmer charges half a bitcoin for one cow. So now the value of a bitcoin may have changed, depending on what people value as more important, a cow or a bag of chips. So how does society value what is more important? A bag of chips could be worth more than a cow to some people, but to others a cow can be more valuable.

    Does this in any way illustrate the fluid nature of money? Or is it a distracting question that makes us instead question whether cows or chips might be more valuable to different people at different times?
    Either clarify what you mean by sentences like these, or lose them:

    Money is what society says it is worth, but the value of the United States dollar is almost universal because most stores will not charge someone more than two dollars for a soda .

    Moving way ahead to your P5, your final sentence is completely irrelevant. Your conclusion, because it is relevant to your apparent argument, needs to be that you understand the abstract representations of wealth (credit score, bank account balances, credit card balances), while completely ephemeral, are REAL and relevant to our ability to buy things, borrow money, make transactions.

    Rhetoric (Grade T)
    For most essays, Argument and Rhetoric are closely related. Let’s call this note a Rhetoric note. It distracts and tires readers to work through “throat-clearing” sentences that “ease into” the sentences with actual value.

    While the United States currency is officially the US dollar, some countries have more unique currencies. One example of a country that uses a unique currency is the island of Yap.In the article, “The Island of Stone Money“, by Milton Friedman, it is told that the Islanders of Yap used stones as their currency . The interesting about is that some of the stones were too large to carry around in a pocket, so they were left somewhere and people would just know who owns the stone today.

    The actual content of these sentences is that stone currency can be transferred to another Yap islander without being moved. The comments about US dollars and “unique currencies” are entirely irrelevant to the point and can either be dispensed with or reduced to a phrase.

    We’re accustomed to transactions being complete when a dollar “changes hands.” But in “The Island of Stone Money,“ [please note the comma is inside the quotation marks] Milton Friedman explains that the Islanders of Yap, who used massive stone wheels as currency, could buy a house for one huge “fei,” as they were called, without ever moving the stone.

    Do you see that this revision delivers the same essential material without distractions, PhillyFan?

    Mechanics (R)
    You write good sentences, PhillyFan (for the most part), and your other technical details create no trouble for you. Your occasional errors (like this fragment):

    Although I understand how the Yap island currency can be similar to the United States currency today.

    are blemishes that keep you from earning a top Mechanics grade.

    Scholarship (Grade R)
    You appear to be giving proper credit to your sources. Furthermore, you’ve incorporated more than the absolutely mandatory sources in your analysis.

    OVERALL
    Take heart, PhillyFan. Your current grade is a reflection of how this work would be graded if it were submitted as part of your Portfolio. Many of the fixes are easy. The semester is young and help is available. Every post can be endlessly revised. I will meet with you any MON or WED in personal conferences and provide continuous feedback in and out of class. You may request a grade update in the Reply field for this post, but only after you’ve made substantial changes to your entire essay (not merely corrected the grammar and mechanics).

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