Why do economists say that ""money is just a social construct""? Do you agree? Why or why not?
Answer (1)
Economists say money is a social construct because it only works if people agree to use it as payment. A ₱500 bill has no real value on its own—it’s just paper. But because everyone trusts that it can buy food or clothes, we use it daily. If people stop trusting money, like during extreme inflation in other countries, it becomes useless. I agree with this idea because money works only when people believe in its value. It’s like using “load” or “GCash”—we trust that these will let us call, text, or pay, even if we don’t see actual coins.
