Genius of Money Post 3: Jacob Needleman Interview

Jacob Needleman provides insight on human nature with regard to money. Through his commentary the reader is prompted to examine “the forces affecting culture” and the relationship between money and spirituality. Money is an abstract concept. It is everything we base our society off but at the same time it is nothing more than an idea we humans have created to allow exchange to occur more seamlessly. Needleman hopes that “ownership of property could provide a base of material security necessary for pursuit of more spiritual goals.” Humans have necessities to live and once those necessities are taken care of, Needleman believes there is more opportunity to achieve higher levels of fulfillment.

This interview also further discusses the idea that passion and interests drive actions. Passions on the one hand are “violent egoistic impulses” and often lead to “social destruction” while interests have more to do with “stability, property, possessions, and bourgeois values.” Through money, our society is able to balance these driving forces. It is important for each individual to analyze his or her attitude towards money. One should not become consumed by the idea that they must gather as much money as possible. Instead, money should be used as an “instrument of love” and an “instrument of service” to allow people to find happiness within their own means.

Genius of Money Post 2

Chapter 1

John Bloom begins Chapter 1 by urging the reader to imagine “a world without philanthropy.” Philanthropy fuels education, research, and the arts, which further improve society. However, this progress is difficult to measure but undoubtedly important. Before money was created, all exchanges were done through the act of gifting. Then, with the introduction of money people began to focus solely on progressing themselves through monetary growth.

For a long period, philanthropy was overlooked as our society structured itself around working to improve one’s financial status. Now, we are seeing a resurgence of philanthropy as companies begin to acknowledge its importance. In Bloom’s eyes, “gifting is the most important and productive component of an economic system” in the fact that “a gift is 100% risk, while the returns on a gift are immeasurable.” Gifting and philanthropy combat the tendency to focus exclusively on monetary fulfillment and allow society to shit towards a more generous and community based society. 

Genius of Money Post 1

Chapter 5 

John Bloom begins Chapter 5 with a commentary on Adam Smith, an eighteenth century economist and philosopher famous for creating the economic theory known as the “invisible hand”. This idea encompasses the notion of social benefits as a result of individual actions. “Self interest” on the other hand may lead to negative results when a condition he calls “never enoughness” is present. This is an unhealthy state where the individual or single corporation excludes the interest of others for “the benefit of a few”.  Bloom notes that this critique isn’t the main focus of his commentary before proceeding to discuss a speech given by Bill Gates. 

During a speech Gates gave in Davos, he referred to Adam Smith’s teachings with regard to breakthroughs in technology. Gates stated, “the genius of capitalism lies in its ability to make self-interest serve the wider interest”. In other words, by creating a free market and using the genius of money, individuals are able to work and be rewarded for their work while contributing to the overall economy or society. With regard to technology, an individual’s creation will improve the lives of the wider community and that individual will in turn receive recognition for that contribution. 

Chapter 13

Chapter 13 begins by discussing the genius behind inventing money. Before its creation, there was no way to value an item or service except through bartering. Now, money influences the thoughts and actions of everyone since it our main driver of value. 

Bloom discusses an instance when J.S.G Boogs, a contemporary artist, had no money to pay for a meal so he drew a $20 bill on a napkin in exchange. This creates an interesting situation where if the restaurant accepts this drawing, they must return Boogs’ change in cash. Boogs has not only used his drawings for food but also rent and clothing which questions our notion of what money actually is. Technically paper money is just a drawing that we accept to have a certain value just as the digits within our bank account are accepted to have another value. Boogs questioned the notion of money by “inverting the system on itself” and we should also question our understanding of money and the decisions we make to gain more of it.