Which came first — the productive work or the payment? That depends greatly on the scenario. You reimburse the chef after they cook your meal. A home contractor might get half of the money before starting work and the other half upon completion. Hourly wages are for the time spent before the paycheck, not in advance.
Here’s an easier scenario. Which came first — the dollar or the income tax? The American dollar came into existence on April 2, 1792 with passage of the Coinage Act of 1792 by the 2nd United States Congress. A short lived income tax during the American Civil War lasted from 1861 to 1872. Our modern incarnation of income taxes began in 1913 with the ratification of the Sixteenth Amendment. Similar payroll taxes didn’t appear until 1934 with the creation of Social Security by Franklin D. Roosevelt.
Modern Monetary Theory appears to be new economic thoughts grappling with a different answer to the fundamental nature of what comes first when talking money. The following podcast from Slate Money is a good wake up call for dispelling some of the fact-myths that have formed in our current economic systems.
Professor Stephanie Kelton joins Slate Money to talk Modern Monetary Theory. June 20, 2020
Money has no value and whatever value we want all at the same time. We forget that because it has numbers printed on it. One dollar can get you a soda out of a vending machine or a tooth from under your kid’s pillow. No value and infinite value all at the same time. Money is just a medium of exchange and can be whatever we want it to be. If we can agree on some values.