Zero Sum Game
POM (physical object money) simulates a zero sum game. A zero sum game is a game in which the amount that is won by the players is exactly matched by the amount that is lost by the players. In poker, for example, you can't win any money unless someone else loses some money. Therefore, in all POM transactions, the parties each feel that in order to "win" they must make the other party "lose." Each person tries to give as little money as possible and get as much of the goods and services being bought as possible. This makes people feel like those they deal with in the economy are enemies. The "dog eat dog" "rat race" and its "winner take all" attitudes in which people treat each other as "rungs" on the "ladder of success" causes people to do all sorts of things that hurt other people, the enviornment, and the economy.
Inflation and Deflation
Every national economy experiences inflation and deflation. Because POM is uncontrolable, no government can prevent price changes. If they set a price substantially above the true market value, consumers stop buying the product. If they set a price substantially below the true market value, producers go elsewhere to sell their goods and services. By trying to set prices, government only creates black markets and smuggling.
Unemployment
POM causes unemployment. Every industrial economy has a portion of its workforce unemployed. It is not that there is not plenty to do. It is that no party is willing to give up some money to pay for the work.
Organized Crime
Organized crime is a mass marketing, illegal business. It must have a POM to exist. Organized crime cannot function on a barter system. Drug dealers, gamblers, pimps, and extortion all depend on a POM.
The vast majority of crimes are committed in the attempt to get money. People who steal things other than money almost always sell the things they steal for money rather than stealing the things they want to own.
Accounting
We count our POM over and over. How much time and resources do we spend? How many accountants, bookkeepers, and cashiers are there?
Divorce
The most common cause of divorce is money problems. Remember that money makes interactions seem like a zero sum game. When one spouse spends money the other spouse has lost that money. That causes hard feelings between the two. Remember how Lucy would trick Desi on the old "I Love Lucy" show? Often she was trying to get money from him. He could not trust his wife because maney made them enemies.
Summation
In general, one can see that almost all the problems we experience, whether economic or social, are either caused by, contributed to, made possible by, or the solution is delayed by the physical object nature of our money.
What does it cost us to use money?
In money terms it costs about one quarter of the Gross National Product (GNP) each year because about a quarter of the labor force services money in one way or another. In the longer term it costs a lot more than that. The rate of increase of the GNP is held down by the business cycle, restraint of trade, labor management relations, supression of inventions, and the use of patents. In other words, by all the ways we could cooperate with each other but don't because of the zero sum game simulation. Thus the 25% each year is only the "tip of the iceburg".
In human terms it costs even more. Our economy produces massive amounts of products that are harmful to their consumers. Examples include cigarettes, alcohol, guns, and junk food. Stress from money conflicts between spouses is a major cause of divorce. Polution and destruction of the environment is a result of casual exploitation by businesses. TV is flooded by obnoxious commercials. Organized crime corrupts government and destroys lives. Medical treatment is far more expensive than it needs to be. Our schools are seriously inadequate. A great percentage of people have jobs they hate. We have about 1.5% of our population in jail. Prejudice and discrimination makes life more difficult for over half of our people.
Next: An Approach to a Better Money