Money
Introduction
This discussion post will discuss at least three factors which impact the demand for money. There will be many more than three factors that will be discussed; however this discussion post will list at least three factors which impact the demand for money.
Money
One of the top reasons that people want to have money is to have money in of itself. Many people want to have money because it equates to power. When you think of people such as Donald Trump who has the money to run for political office in the United States, Bill Gates who has the money and power to run an organization and influence the world with his Microsoft products, Oprah Winfrey who is a Media Queen with a lot of money and power and the Queen of England in the United Kingdom who is one of the richest women in the world and has access to huge sums of money in order to many things as helping people, which Oprah Winfrey does as well. One of the number one reasons why people have a demand for money is in order to have access to power and what money can buy. This leads to the second reason why there is a demand for money and its impact.
According to Moffatt (2016), the second most important reason why people want money is for the purposes of consumer spending. People are bombarded through the media, advertisements, and commercials and through the influences of family and friends, as well as co-workers to have and to own certain things. The expression “keeping up with the Jones’” is alive and well in American society. If your neighbor purchases a new car – you want a new car. If your neighbor purchases a boat – you want a boat. Again consumer spending ties into the number one reason why people want to have money and its impacts which is equated to power and prestige.
The third reason why people are impacted towards a demand for money is also related to precautionary motives as noted by Moffatt (2016). When you look historically, even in recent history with the economic downturns that have occurred all over the world – all over the world people want to ensure that they are “saving for a rainy day.” No one wants to end up living on the streets – at least the majority of people on this planet. With savings in the bank and a precautionary plan that will allow for people to live comfortably even if something unexpected were to occur where there was a loss of income – the desire for money is there.
The fourth reason according to Moffatt (2016) why people want money is for investment purposes in stocks and bonds. This is again is another big reason why people want money and the primary purpose of investing in stocks and bonds is to generate even more money that links to the three previously mentioned reasons for having money.
Conclusion
This discussion post discussed at least three factors which impact the demand for money. There are many more than three factors that were discussed; however this discussion post listed at least three to four factors which impact the demand for money.
Reference
Moffatt, M. (2016). More Factors Which Influence the Demand for Money. New York:
About.com. Retrieved from: