A coin or bill, a bar of gold or a bitcoin have value only because we the people perceive them to hold value. Bartering and banking are some economic systems that like religion, are complicated to determine which is best; it comes down to faith and trust of the users. Money is what you use to pay the water bill, and also the story of humankind.

Where does value come from? Value can be presented to us as a given sum such as property, however this can fluctuate over time. We can also negotiate a value, such as shopping in a market. Therefore, value is tied to consumer beliefs. Economic activity is not an independent, it is affected by political, social and intellectual forces. The spending or saving of money within the economy is determined by consumer confidence, which is influenced by various external factors.

What systems in our society provide real value? Goods and services are considered the real economy as they are linked to something tangible.  Financial and/or banking activities can be considered unproductive activities, value extractors, their main goal is to generate profit, rather than giving back.

Mariana Mazzucato, an innovative economist, analyses ‘How the financial activities can be shaped to actually serve their purpose of producing value is the real question’. Mazzucato, whom is capitalist, confronts the idea of the profit for profit and installs the concept of how the profit can become valuable to society and add purpose.  This is an interesting perspective, where a capitalist political view can sit alongside a socialist outlook.

Value is contested by various factors, including climate change and the covid pandemic, which causes us to reconsider where value comes from and what is truly valuable. Can we make the change? ‘It is impossible to deal with the changes we face, without thinking about value’.