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It makes possible division of labor, specialization and conversion of one type of good or service into any other type. Money, according to economists, is a medium of exchange, store of value, unit of account.

But these terms merely describe its major functions without really explaining what money is. Even in a smaller scale in business, wages and salaries are important matters when it comes to human. The wages are the proof of peoples effort and devotion to the work they do.

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They eat nutritious food which helps sustain body health and use cars to transport them to wherever they want to go. On the other hand, people who do not have a job and earn nothing often have hard times sustaining their life. They also do not have a permanent shelter where they could rest on.

  • Cheerfulness is the best promoter of health and is as friendly to the mind as to the body.
  • In addition to that, they have to undergo very painful medical procedures.
  • A cancer patient for example typically has to undergo chemotherapy and radiotherapy which have undesirable side effects such as vomiting, hair loss, weaknesses and other unpleasant symptoms.
  • Many cancer patients and others who suffer from debilitating sickness spend huge amounts of money for treatment.
  • America's health care system is in crisis precisely because we systematically neglect wellness and prevention.
  • Despite all that, there is no guarantee that one would survive such sickness.

The wages vary from one to another depending on the kind of job people do and the position they occupy in the company. People use the earnings they get from their work in many ways. They buy the necessary things that they need to sustain their living such as home, food, and car. As mentioned in the earlier paragraph, these wages are also used to attain high quality of education.

Then, I can take the money I earn and pay for a variety of goods and services. As language promotes exchange of ideas, information and intentions, money facilitates the exchange between human beings of goods, services and other things of perceived value. Exchange is the social and economic basis for the evolution of society. Without exchange, each human being must rely solely on his own energies to produce all that he desires or on his capacity to take by force that which is possessed by others.

In fact, without money, every transaction would require me to find producers who would exchange their goods and services for bassoon performances. In a money-based economy, I can sell my services as a bassoon player in an orchestra to those who are willing to pay for orchestra concerts with money.

There are huge differences between people who work and earn wages and people who do not. People who can earn their livings mostly live a life filled with what they want to have.

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