An Explanation of Money

This is just a stranded thought, many people do not realize what money is. money as we have it now is based on the labour theory of value (LTV), a principle coined by Smith, Ricardo & Marx.

Simply Put, your money is worth as much as an hour of Labour is worth, for example:

In Britain the minimum wages is £5 an hour.

The average meal at a restaurant is £2.5.

so the meal is worth half an hour of labour.

A more realistic example is that when King Abdullah came to power, he raised salaries by 15%

this caused the recent rise in prices, but how ?

Right, so lets say someone gets 2000 r.s. a month, working 180 hours a month, that means he earns 11 r.s an hour

lets say he buys a book with 22 r.s. so its worth 2 hours of labour

after the futile generosity by the king, you get 12 r.s. an hour, making your salary 2160, how good is that ? after the increase in prices, the book is worth 24 r.s. (i.e the same amount as before, which is 2 hours of labour )

So your salary increase did not improve your life. well, you say, at least no harm is done....

Ha, your wrong! salary increases - official ones that is - contribute to inflation; making your currency of less value than it was.

I could go more on this, but I'll just leave it hear for now, after all, this is not school.