Why Do Cavemen Need Money?

Money is involved in everyone's daily life, and it is very hard to imagine life without the use of it for many. Cavemen did not require money for survival, nor did they come up with the idea for it. On Course Hero, a document explains why cavemen didn’t need money to survive, “Cavemen did not need money because they were all producers of their own good, hunted their own food and made their own clothes.” Cavemen didn’t need money to survive and probably never thought of needing such a thing because they lived by providing their own needs. It is possible to have human needs met without money. The Human Services website explained that they help those who don’t have their basic needs met, and didn’t mention money, “The one of the three main distinctions are the providing of basic needs and services for those in crisis who are seeking shelter, food and a safe environment such as
Before there was money, people traded things between themselves. A pound of crops for 12 fresh eggs. Exchange allowed people to gather what they needed. Sandy Ikeda from the Foundation for Economic Education believes, “The infrastructure that supports money is made up entirely of mutually reinforcing expectations: I will accept money in exchange only if I’m confident that others will accept money in exchange, and they will do so only if they expect still others to accept it” These reinforced expectations that keep money going. In the book Essentials of Economics, written by Paul Krugman, the author explains the purpose of money, “Money plays a crucial role in generating gains from trade, because it makes indirect exchange possible.” Money is an invention that was created in order to make something that could be universally traded in for things. Of course, different countries have different currencies, but without currency we are left with trade. In society today money allows exchange in the indirect sense to