How Finance changed the course of Civilization
We live in a world where information is a click away, our loved ones are a call away and our existence is just a button away. We have transcended from the meek defensive species on this planet to a dominant power to be reckoned with.
Over the past 5000 years, there has been a paradigm change in the way we live, eat, think, dress and even socialize.
Our journey from an early man to a modern man is replete with discoveries, inventions, and ideas that shape the contemporary world. While science has assisted humans to harness the power of nature and mind to lead better lives, there is one more field that has been gradually sculpting the way we live. Its indispensable contribution towards our history is usually not talked about, but it has compelled humans to come out of the cave and make their mark.
It is a subject that has inspired an early man to become prudent and think ahead of time. It is a subject that forced humans in Mesopotamia to record and write. It is a subject whose underlying power still drives the modern man and his digital era. It is the subject of Finance.
The world that we live in is fuelled by Finance. From analyzing our budget to paying our bills, swiping our cards to paying in cash, buying ice cream to selling products, from ticker points to pension plans, we are surrounded by Finance.
And yet, a subject that drives all the lives from a housewife to a multi-billionaire is never taught in school.
So let us begin the adventurous odyssey to understand and demystify the beautiful world of Finance.
The first question that pops into the mind is
What is Finance?
The most common definition that I could find after flicking through
books and browsing through websites is
“Finance is the art and science of making and managing money.”
In the book, Money changes everything, the author mentions that humanity has been working for finance for the last 5000 years. The earliest records of writing include the clay tablets from Mesopotamia, which were a set of contracts.
But what could have compelled the men in Mesopotamia to participate in a trade?
It was certainly neither art nor science. The only reason that would have impelled them is the need or desire for a commodity or service. It could have been the need for grains for the exchange of fabric, or the desire to be
educated for the exchange of shelter etc.
Finance is not just art or science, it is also a means to fulfil our needs.
Though the means to fulfill our needs have remained the same for the last 5000 years, the tools used for exchange have changed significantly.
They began their journey as grains in the Barter system and then became coins. From metal coins, they managed to morph themselves into paper currency. And from paper currency, they eventually became plastic cards. And now apart from plastic cards, they are also coded in a computer representing themselves as crypto-currency.
A couple of centuries forward, we now live in a world where Finance involves accounting, taxes, insurances, IPO, fintech, etc. It can indeed be observed that it has evolved with humans. Its journey from Mesopotamian tablets to the Internet, early men to men in suits has been fascinating.
However, it is not just a subject anymore. It is a riveting force that gave us a dimension to explore, experiment and grow. A force so strong that made the first humans write.
