Money Money Money Money............................ Money

jamesmorgan

Norfolk_Jim wrote: »

The problem with wealth is that only things are true wealth. Money isn't wealth, it's an intangible. it only has value so long as society agrees to regard it as having a value.

I agree that money isn't wealth, but I don't think it is quite as simple as saying that only "things" are wealth. Most wealth is about consumption. That could simply be buying services eg a restaurant meal, a holiday etc, or it could be using assets to provide utility value. For example, owning a house isn't wealth unless I live in it or rent it out. It is the act of using it that provides wealth. It is for this reason that owning a gold bar isn't wealth - I can't do anything with it. In this context it is just money. However, if I get it converted into jewelry that I wear, it becomes wealth.

Norfolk_Jim

jamesmorgan wrote: »

I agree that money isn't wealth, but I don't think it is quite as simple as saying that only "things" are wealth. Most wealth is about consumption. That could simply be buying services eg a restaurant meal, a holiday etc, or it could be using assets to provide utility value. For example, owning a house isn't wealth unless I live in it or rent it out. It is the act of using it that provides wealth. It is for this reason that owning a gold bar isn't wealth - I can't do anything with it. In this context it is just money. However, if I get it converted into jewelry that I wear, it becomes wealth.

I guess different people will define wealth in different ways but if you accept that money is simply a concept that facilitates an easier exchange of goods and service than bartering, wealth can only be the material things you possess.
I suppose you could quantify knowledge as wealth - you can use it to better yourself or feed yourself but you would still need access to physical things in order to use your knowledge.
You might know how to farm but without some land that knowledge is worthless unless you trade it to another for food or the use of some land -
which leads us back to inventing money to facilitate it.
Over history, even when currencies colapse, they eventually return to money as a system, but monetary wealth is uncertain due to things like inflation while owning actual things is less so.

Have you not seen how many of the very rich are cash poor but asset rich? Assets are wealth - money is simply a tool

jamesmorgan

Norfolk_Jim wrote: »

Have you not seen how many of the very rich are cash poor but asset rich? Assets are wealth - money is simply a tool

The UK is full of examples of the aristocracy who may be asset rich (typically via their family home) but are cash poor. As a result they have to lead a very frugal lifestyle. This compares with the nouveau riche, who may have much less in the way of assets but lead a lavish lifestyle spending vast amounts of cash. Who is wealthier - I guess it does depend on your definition of wealth.

I agree money is just a tool - although without lots of it, it is quite difficult to enjoy the benefits of wealth.