I recently came across this joke by Elon Musk on GDP which goes like:

    "Two economists are walking in a forest when they come across a pile of shit.

    The first economist says to the other “I’ll pay you $100 to eat that pile of shit.” The second economist takes the $100 and eats the pile of shit.

    They continue walking until they come across a second pile of shit. The second economist turns to the first and says “I’ll pay you $100 to eat that pile of shit.” The first economist takes the $100 and eats a pile of shit.

    Walking a little more, the first economist looks at the second and says, "You know, I gave you $100 to eat shit, then you gave me back the same $100 to eat shit. I can't help but feel like we both just ate shit for nothing."

    "That's not true", responded the second economist. "We increased the GDP by $200!""

    This was my first step in understanding economics. An economy is born when someone creates something valuable and trades it for something valuable someone else created. This is barter but today we use money. We can only spend money when we have money. I want to learn how money originated and on what basis it was distributed. I would be grateful for any recommendations of learning resources that would help educate me.

    How did money originate and how was it distributed?
    byu/Steady_Decline3759 inAskEconomics



    Posted by Steady_Decline3759

    1 Comment

    1. EconomistWithaD on

      Money is simply an agreed upon unit of measurement that people in an area will accept. Can be gold, silver, fiat, shells, cows, etc.

      There are plenty of books on the history of money.

      Without endorsing any of them, here are a few.

      Ferguson, The Ascent of Money

      McWilliams, The History of Money

      Graeber, Debt

      Weatherford, The History of Money

      Edit: if this is your “first understanding” of economics, you don’t understand economics as well as you think.

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