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Money fundamentally represents a quanity of labor. [[Adam Smith]], writing in 1776, said "a quantity of labor is difficult for many people to understand," however anyone who has ever examined the number of hours on a paystub in the 21st century should have no problem grasping the concept. [[Aristotle]] said money is the unit of measure used to represent how many shoes a shoe cobbler must make to equal the labor of the carpenter who built his house.<ref>All prices are ratios, for example 1 gal. of gasoline that sells for $2.89, is expressed as 1:2.89, or a wage rate of $15 ''per'' hour would be 15:1.</ref> Money is a fiction used to express the exchangable value of equal quantities of labor.

Money fundamentally represents a quanity of labor. [[Adam Smith]], writing in 1776, said "a quantity of labor is difficult for many people to understand," however anyone who has ever examined the number of hours on a paystub in the 21st century should have no problem grasping the concept. [[Aristotle]] said money is the unit of measure used to represent how many shoes a shoe cobbler must make to equal the labor of the carpenter who built his house.<ref>All prices are ratios, for example 1 gal. of gasoline that sells for $2.89, is expressed as 1:2.89, or a wage rate of $15 ''per'' hour would be 15:1.</ref> Money is a fiction used to express the exchangable value of equal quantities of labor.

A failure to understand what money is results in [[socialism]]. For example, Rep. [[Alexandria Ocasio-Cortez]] has proposed "free" healthcare, education, housing etc., essentially promoting the non-sensical idea that people have the right to consume goods and services that have not yet been produced by other people's labor. To implement such a system, which has been tried by various societies at times,<ref>e.g., [[USSR]], [[PRC]], [[North Korea]], [[Venezuela]], [[Cuba]], etc.</ref> results in one group of people performing labor for which, by law, they will not be paid, and another group of consumers receiving the payment or benefit. In short, a [[slave]] system.

A failure to understand what money is results in [[socialism]]. For example, Rep. [[Alexandria Ocasio-Cortez]] has proposed "free" healthcare, education, housing etc., essentially promoting the non-sensical idea that people have the right to consume goods and services that have not yet been produced by other people's labor. To implement such a system, which has been tried by various societies at times,<ref>e.g., [[USSR]], [[PRC]], [[North Korea]], [[Venezuela]], [[Cuba]], etc.</ref> results in one group of people performing labor for which, by law, they will not be paid, and another group [[entitlement|entitled]] to the benefit. In short, a [[slave]] system.

The [[currency]] which serves as money may be backed by some tangible commodity, such as the [[gold standard]], or may be [[fiat money]], such as [[Federal Reserve]] notes. Alternatively, trade may be carried on using commodity pay, wherein existing commodities are assigned exchange values but not explicitly designated as money.

The [[currency]] which serves as money may be backed by some tangible commodity, such as the [[gold standard]], or may be [[fiat money]], such as [[Federal Reserve]] notes. Alternatively, trade may be carried on using commodity pay, wherein existing commodities are assigned exchange values but not explicitly designated as money.