Commodity-Backed Currency in Socialism

[Klipper]

i was wondering wheather it would be better, in a socialist society, to use a commodity-backed currency (euro, liberty dollar,) or a non-commodity-backed currency (us dollar, canadian dollar.)

i don't have to much knowledge in regards to currency, so lets have a discussion/debate about it. i'm sure there's major pros and cons to each one.

[werewolf]

Well generally currency is an idea frowned upon in Socialism or Communism. However, people don't appreciate things unless they work for them. I prefer the idea of "Luxury Points." If you work extra or do something great, then you should get "points" to buy things that aren't needed. For example- a work of art.

[Klipper]

i could imagine that having commodity-backed currency would make for a stronger and more-fortified economy.

[Entrails Konfetti]

During some point towards a gift economy,there will most likely be currency. Even through any form of money, is arbitrary for the fact that commodities are measured by labour-time necessary(quantity) and not on the actually quallity of labour.

But,in my point of veiw,anything thats another fiat system type of currency is worse than anything thats backed by gold and silver in reserves.

[apathy maybe]

Money is simple a representation of resources. If there is not a "thing", the value of which doesn't change, then money is effectively "worthless". As I understand it inflation happens when prices go up. All prices go up, money is worth less then it was before. If it were back by some commodity, say wheat was always worth a certain amount, then (as I understand it) inflation is impossible. The only trouble with using something like wheat is that there are different qualities of wheat. Thus in the past gold has been used.

In a society where things are not exchanged on the basis of scarcity then I see no reason for a currency at all. If I can simply walk into a warehouse and get the flour I need for the next week, then where is the incentive to hand over some token? The only reason that you would have a token, would be to get something that is scarce, a luxury item of some kind.

[Severian]

Originally posted by [email protected] 17 2005, 09:51 AM
i could imagine that having commodity-backed currency would make for a stronger and more-fortified economy.
And yet pretty much everyone in the world is using fiat money. Maybe everyone, I can't think of an exception offhand.

So far, postcapitalist countries have tended to use currencies which are even less hard, i.e. not convertible on the world market.