College and work has soaked up my time lately. This entry is going to be a rather short one. After this, I will bring the three previous entries together and bring us to a specific area where I want to develop. Enjoy!
Money and Flow of Money
The final important and most basic principle we need to visit is the concept of money and the flow of money in the economy. Once that is set up we can finally start diving into the wonderful answers and reasoning behind scarcity. Before we go too far, why is money important? The invention and development of money as the main aspect of the economy came about with the abolishment of serfdom and feudalism in Europe. It became the weight of measurement for wealth and development when the Industrial Revolution and Capitalism took hold in Europe.
Money is both coinage and paper. With the onset of Capitalism the idea of money start to lead away from a coin to paper and debt. However, paper money and debt was still based on gold or silver, depending on your national laws. As industrialization grew and developed so did the development and implementation of money into the economy.
This greatly affected the economy. Money is a way to hold wealth, even when the economy starts to falter, but still can quickly be used and invested back into the economy. The average consumer is allowed to spend money easier than old weighted coins and bars of gold or silver. The easy usage of money quickly developed the concept of the flow of money. In basic terms, “the flow of money is how fast a dollar can move through the economy and how much can be purchased with that dollar.”
Bringing these concepts to CN is a rather tricky one since we cannot track every single online generated dollar. Instead we can see this idea through the way we tech deal. Depending on the rate you do the tech deal, a certain amount of NS is generated. That NS then generates more money which in then can generate more NS.
The tech deals themselves can be seen as our version of the development of money. We use tech deals to generate wealth, strength, and more money. The same was done with money when Capitalism was brought to the forefront. Tech deals are essential to the way we develop and the way we play the game. Without them we will still be stagnant and at a slow rate of growth.