During World War II, cigarettes were used as money in prisoner of war camps. Considering the attributes that a good money should possess, why would cigarettes cmerge as money among prisoners?

Short Answer

Expert verified
Answer: Cigarettes emerged as money among prisoners during World War II because they met most of the attributes of good money, including durability, portability, divisibility, uniformity, limited supply, and widespread acceptability. Although not a perfect form of currency, their functionality in the unique and stressful conditions of prisoner camps made them a suitable medium of exchange.

Step by step solution

01

Identifying the attributes of good money

The main attributes of good money are: 1. Durability: Money should not deteriorate or lose its value over time. 2. Portability: Money should be easy to carry and transfer from one person to another. 3. Divisibility: Money should be easily divisible into smaller units for different amounts. 4. Uniformity: All units of money must be consistent and have the same value. 5. Limited supply: The quantity of money must be limited to maintain its value. 6. Acceptability: Money must be widely accepted by a large number of people.
02

Analyzing the emergence of cigarettes as money in WWII prisoner camps

Now, let us analyze how cigarettes fulfill the attributes of good money: 1. Durability: Although cigarettes are not as durable as coins or paper money, they can be stored and maintained for a reasonable period of time without losing their function as consumable items. 2. Portability: Cigarettes are light and easy to carry, making them portable and easy to transfer between prisoners. 3. Divisibility: One cigarette can be considered a basic unit, and smaller amounts of worth can be represented by portions of cigarettes, making them divisible. 4. Uniformity: Cigarettes are generally consistent in terms of size, quality, and brand, making each unit uniform in value. 5. Limited supply: The supply of cigarettes in POW camps was limited, as they were provided by external sources such as relief packages or the guards' allocation. This limited supply helped maintain their value. 6. Acceptability: Due to the stressful conditions and limited availability of goods in POW camps, cigarettes were highly valued as a consumable item, making them widely accepted as a form of currency.
03

Conclusion

In conclusion, cigarettes emerged as money among prisoners during World War II because they met most of the attributes of good money. They were durable, portable, divisible, uniform, had a limited supply, and were widely accepted among the prison population. Although not a perfect form of currency, their functionality in this unique situation made them a suitable medium of exchange.

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