Before we used money as a payment system we exchanged goods. So a sheep for a goat or chickens in exchange of corn. We see the problems with this. After all: it is very difficult to do this the fair and some form of the payment system. After all: it makes the trade a lot easier. No trading of goods for goods, but use money as the method of exchange.
This also brings another benefit. You can easy tax. After all: how could any Monarch tax life cattle? Should they take a quarter or half of a animal and leave the farmer with the other half?
During the dark ages, a tax was mainly used to solve family disputes between Monarchs. For those who are not a Monarch, it means a war. After the issue was solved the tax was ended. At least, that was the goal. Most taxes are never abolished.
The introduction of money made it possible to hire soldiers of fortune. It allowed Monarchs to do even more wars. After all: the money could be used with supplies. Simply get all fixed upon a better method than the enemy.
After all, you could use war to cover up when things go wrong. When there is a shortage of food due to the climate you can simply start a war.
The problem with this is what happens after it. Let’s have a look. After the war, you need to rebuild the country. You need to fix something for those who are coming home from the war and are disabled. Here we see the introduction of welfare and the government welfare programs.
When we look at the effect on the economy than it is clear to see how devastating it is. After all: al the military spending is just resulting in worthless currencies.
Unfortunately, there is no lesson learned. After all, we just see the currency going worthless. We simply see currencies becoming worthless all the time. Shall we do something else, just to try it and not ruin our wealth?