What is the Value of Money?

The value of money can be defined many different ways by many different people. People assign value to things based on the worth or impact that object has upon their life. Most people in America value their cell phones more than sliced bread because they depend on it so much throughout their daily lives, whereas some children in third world countries would have a much higher value for bread because it is rare and sustaining. So for this example, value is measured by worth and is a matter of perception. The value of money may be literally determined by the government (a penny is worth a cent; if a bill displays the number 100, it is worth $100), but the value that each individual places on money is determinant of many factors. Such factors include socioeconomic status, financial stability, number of children in the family, employment, and even one's interests and preferences.

My mother, for example, LOVES to buy vases for decorations (though most end up in the garage), and would probably be willing to pay a nice sum of money for a beautiful hand-crafted, one-of-a-kind vase. I, however, would NOT. I buy cheap, and if I want a vase, I will go find myself a cheap vase to utilize. I am not interested in vases, like my mom is, and would therefore not pay as much money to procure a vase. But since she has a preference for beautiful decorations, she places more monetary value on them. Other factors in relation to this example include employment and financial stability. My mom has a job and a fairly steady income (as a flight attendant, she chooses when to work so her paycheck isn't always the same amount, but depends on how much she flies between paychecks), whereas I am a college student without a job and who is dependent on student loans to pay rent and buy food. So with less money to burn, I value $20 more than my mom values $20 because I am going to be more conscious about how much I can buy with that twenty bucks. Some value quantity over quality, and some value quality over quantity.

The value of money is also a matter of demand. As a business major, I have studied enough economics and marketing to know that if demand goes up for a particular good or service, the price for that product is going to rise as well. Business is all about making profits. Likewise, if the demand for a product decreases, the price too will decrease- and not always globally, but in certain areas. Peanut butter is really expensive in France because it is not as common there, but in America, peanut butter is its own separate food group and is a necessity for every household (except for people with peanut allergies- poor things). It is more common in the U.S. and is therefore cheaper. Another example is Rosetta Stone, which costs hundreds of dollars here, but which can be sold for $5 in some other country (mom has mentioned this a few times, I just can't remember which country it is).

Individual costs and prices of money also used to be a lot higher, and one could purchase a lot more with a dollar back then, versus a dollar today. I recently read something online that a college student posted about how tuition rates have drastically increased since the 1970s. The student posted on Reddit, "This is interesting. A credit hour in 1979 at MSU was 24.50, adjusted for inflation that is 79.23 in today dollars. One credit hour today costs 428.75." [[The rest of the article backed up these numbers and further expanded on the subject- if you're interested here's the link:  http://www.theatlantic.com/education/archive/2014/04/the-myth-of-working-your-way-through-college/359735/]]

So, in short, the value of money is an individual perspective that can be assigned to an object or service or person based on the worth that each individual places on that item. The monetary value of products can be labeled by companies, countries, or the government, but the value that each individual places on an object may determine the items they place in their lives and the things they avoid. Our individual perceptions of the value of money and the things we buy with it are essential in shaping the business world and in shaping ourselves.

Machu Picchu - civilization origins

Also known as the Lost City of the Incas

Machu Picchu is a mystery. There are several different theories as to how it came about and why it was found empty centuries later.
It was build in the 1400s, but remained unknown to the rest of the world until 1911. It was inhabited by Incas and is located 8,000 feet above sea level, and is in the midst of a tropical mountain forest on the eastern slopes of the Peruvian Andes.

Many theories about the reason the city was built suggest it was for an emperor and his family, though it has enough room for a small town. " Archaeologists have speculated that Machu Picchu was a temple or sanctuary for high priests and women who have been referred to as Virgins of the Sun, though more recent research has convinced many that it was built as an estate for the Incan emperor Pachacuti, who ruled from 1438 until 1471 or 1472."

The Incas probably chose this location because it is well-hidden, and when the Spanish conquerors invaded, they never found the civilization of Machu Picchu. With a plethora of stone available, they built the city: over 170 buildings and thousands of steps. They shaped stones out of the white granite so that they fit together so perfectly and tightly that one cannot stick a knife in between the stones. In addition, they did not have chisels, nor iron, and used river rocks to shape other rocks.

Along with all the buildings and steps, they build over 600 terraces on which they grew crops (likely maize and potatoes), and which kept the city from falling off the mountain. They build the terraces in layers: first a coarse rock base (which allowed water flow and stability), next they piled on smaller stones, a layer of gravel, a layer of sand, and finally a layer of soil on top.

They also had a sophisticated irrigation system, built 16 fountains, and received about 79 inchces of rainfall annually. The system is far too complex for me to summarize (or fully understand) other than saying: They build a series of canals and channels leading from a spring into the 16 fountains that they built. Their drainage system is similarly constructed but separated from the clean water for obvious reasons (wouldn't want any accidents when it comes to clean water). A more detailed description of the water system can be found here: http://www.waterhistory.org/histories/machu/