chapter  3
Division of labour and production of surplus products
Pages 14

Introduction There is hardly any discussion about the origin of money without the concepts of the division of labour and surplus product. Any reliable investigation would, indeed, be an incomplete without these two vital linking components. The fact of the matter is that they are the primary ingredients in the series of events that ini­ tiated money. As expected, they can be found in virtually every serious attempt made to inquire more closely into the real inception of money. They are among the first two prerequisites that carry within themselves the germ of the creation of money. A failure to discern the actual importance of this fact can result in serious misunderstanding of the process of the formation of money. Thus due to their vital significance Chapter 3 will be assigned to a critical study of these two concepts and their relation to the origin of money. The chapter will examine their share in the configuration and the genesis of money. In this chapter we will show how the two economic events are pivotal to the process of the rise of money. Although the literature on these issues is extensive there is, nevertheless, a unanimous agreement on the critical role that these events play in the creation of money. The disagreement is, by and large, in the categorization of the sequence of events. The order is seen either as the primary or the secondary source in the process. Some make a direct connection while others see an indirect relationship between the origin of money and these events. But for the vast majority the linkage falls under the former category. Attention in this chapter will be focused on seeking answers to the following questions: What is in the process of the division of labour and the production of surplus product that initiates money? How do they pave the way to the rise of money? Can there be money without any division of labour and specialization of surplus product? What is the order these events had to follow? Which events preceded others and which event came first and which last? During the course of evaluation of these concepts we shall reveal that in spite of conventional beliefs these events are not the secondary prerequisites in the process of the creation of money. It will be demonstrated that they are the primary source of the origin of money. In addition, the chapter will reveal the fatal flaw in the chain of the reasoning of mainstream economics concerning their order of sequence.