Introduction to Payment Regimes and Societal Participation
One of the fundamental aspects of engaging in society is the concept of payment. There are various regimes of payment that individuals can opt for, each offering different levels of freedom and constraints. This article explores the various payment regimes and their implications for societal participation and individual freedom.
The Wild and Solitary Life: No Payment
At the extreme end of the spectrum is living in the wilderness, away from societal structures. Here, individuals can theoretically avoid payment systems altogether by producing their own goods and services. However, this lifestyle comes with significant constraints, as one must produce all the necessary goods to sustain oneself. This regime is mutually exclusive with any form of formal societal participation, where direct interactions with others are necessary.
Direct Trade with Real Goods: No Room for Money or Bond
When direct trade is possible, payment takes the form of real goods. In such transactions, money or bonds are not involved. This scenario applies where reciprocal exchanges are feasible between individuals. For example, in a barter system, one individual might offer a chicken for a handmade rug. This regime is limited by the availability of mutual goods and the trust and strength of the relationship between the parties involved.
Indirect Trade and the Requirement for Money
The most common and complex regime is indirect trade. Here, payment is almost always conducted using money. Indirect trade involves an intermediary who facilitates the exchange between parties. Whether it is digital money or paper currency, the intermediation of currency is essential to execute transactions. Attempting to use subsistence payments or barter in indirect trade is impractical and often impossible due to the lack of mutual trust and goods. The choice of what is considered money is often determined by the intermediary, typically a bank or financial institution, which bears the risk associated with the transactions.
Freedom in Payment Regimes
The concept of personal freedom in payment regimes often comes down to the constraints imposed by societal norms and existing economic structures. If an individual wishes to remain completely free, they can avoid participating in society and the payment systems that come with it. However, this freedom is limited by the need for other forms of sustenance and basic needs. For those who do engage in society, the choice of payment is largely determined by the demands of suppliers, as seen in the example where a customer insists on paying with a lecture instead of money, rendering such attempts ineffective.
Ultimately, Payment Systems are Inevitable for Society
The adoption of payment systems, even if they are not perfectly voluntary, is vital for the functioning of modern societies. Historical examples, such as the King of England's authorization of the Bank of England to issue paper money, demonstrate the advantages of such systems. Paper money allowed for increased liquidity and economic growth, making it easier to finance industrial production and military campaigns. Reverting to a system of pure commodity money, like gold and silver coins, would be detrimental, as it limits the flexibility and adaptability of the economy.