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Money Or No Money In The Federation?

Speaking solely for myself, I've often found the "no currency in the Federation" thing to be silly. :rommie: I'm not convinced that the advent of replicators would have totally made it obsolete, for a variety of reasons. Just as today, the ability to buy fresh groceries easier or to make microwavable meals hasn't caused restaurants to go out of business or the more traditional cooking skills to vanish.

I personally kind of like FASA's setup with the Federation using a common currency (credits) for economy while many worlds retain their traditional currencies with a variable exchange rate. The Federation has its own stock exchange and a variety of companies who manufacture goods like warp engines and phasers for both Starfleet and civilian markets. Keeping a ship going isn't cheap. :D
 
Even if within the federation there is no money, the federation needs at least latinum to deal with other nations, you need strips of latinum to talk to the grand negus, you need it for getting dilithium chrystals,
since not everything is made or mined with in the federation.
 
Does anyone have any evidence that the Federation has money beyond what can be described as currency? Does it only perhaps have currency?
 
My theory is that within the Federation there is no need for money for anything that is produced within the Federation. So you get housing for free, education, clothes, food etc.

Now Federation citizens do whatever they want with their time as they are not forced to work due to an economic system, so they do what they like. Some like to be hospitable and take care of others so they "work" in hotels or become a chef in a restaurant because they love cooking and enjoy people eating what they cook ( Sisko's dad for example). Star Trek makes us believe that people have been freed from a capitalist system and in turn seek a meaningful way to fill the hours of the day even if they don't have to, they could stay home all their life and watch shows, play games and use the replicator to eat their way through all the cultures of the Federation.

Now outside the Federation it is not so enlightened, capitalist systems exist with the Ferengi being obviously the best example, so in my theory the Federation has an economic service whose sole purpose is to trade with non-Federation people in order to "earn" currency, which is then stored for use whenever someone acts on official Federation business ( including Starfleet, who maybe get "shore" pay when they visit non-Federation planets and may want to buy things).

To make it more realistic the Federation might even encourage people to be productive members of society than just being couch potatoes all their life thus earning virtual credits depending on the task they can then convert into non-Federation money in case they want to buy something that is not from the Federation or apply for something that is of limited availability, e.g. a lake front historic house on Lake Geneva they can turn into their home ( basically anything that can't be produced and is thus limited in availability).
 
My theory is that within the Federation there is no need for money for anything that is produced within the Federation. So you get housing for free, education, clothes, food etc.

...

I think that's sound a pragmatic way to try and square the Federation's no money approach with the rest of the universe.

I also read a theory once that made sense that if you're on an outpost like DS9 you'd basically get a stipend so that you can operate in the local economy.
 
The real life explanation is that "no money," along with "everyone just works to better themselves," sounds great as utopian ideals. But so far as actual human history, we have no evidence that such a system could ever be viable, and writers have no idea how to actually write such a society, so inevitably references to money keep slipping in.

In universe, I prefer to think of it the way some others have described it: that when they talk about no money, they are talking about physical currency. In TVH, for example, Kirk may have had lots of Federation credits back home that are their form of money, but that would be worthless to him in 1986 San Francisco. He knew they needed cash. And the Ferengi economy isn't drastically different simply because they still have money, it's because they still use physical objects rather than digital currency, and also because they essentially worship money.
 
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