A Video Review: "What is Money?"
by Coronet Instructional Films
Review by Jeff Limpert
|
The question came up, "What is the advantage to spending the Economic Stimulus locally?" We first addressed this concept of circulation in one of the articles. The early American colonists had items and services to offer, but could only easily exchange with those who had a direct need for these goods or services. Once the United States was able to coin its own money, it became easier for our economy to grow by the circulation and reuse of the money acting as a medium of exchange. Today, many people have unfulfilled wants and needs to which they could apply the Economic Stimulus payment. They will have a choice of spending the money in the same way they normally do, or to join with other people to spend this stimulus package within their local community and keep the money circulating locally as long as possible. Doing the latter will maximize the effectiveness of this new money. |
The 1947 black and white video (see link below) is a short film just over 10 minutes long that follows a five dollar bill around as it travels through the community. Along the way a narrator explains how money is used as a medium of exchange for services and goods; illustrates how barter served people in simpler times; and the difficulties people would face using barter to obtain products in our industrial society.
Though inflation has raised the cost of items mentioned in the pre-credit card economy of the film and the fashions are dated; its message is still relevant to our purpose. The more the money circulates around our towns and neighborhoods the more it allows us to exchange our labor and the items we sell for the goods and services we desire. If on the other hand we just send it out of town the first chance we get, then we are not able to continue the cycle of exchange and improvement as demonstrated in the film.
This film illustrates the how and the why of what we are asking people to do with their discretionary income. Spend it locally (when you can) to do your part to rebuild the local economies which have taken such a beating over the last thirty or so years.
This is the link to the video: http://www.archive.org/details/WhatIsMo1947
