Saturday, February 02, 2013

Money vs. Riches

We are frequently led into error by mistaking money for riches; we think that a people cannot be impoverished by a waste of money which is spent among themselves. The fact is, that men are impoverished only in two ways; either by having their gains suspended, or by having their substance consumed; and money expended at home, being circulated, and not consumed, cannot, any more than the exchange of a tally, or a counter, among a certain number of hands, tend to diminish the wealth of the company among whom it is handed about. But while money circulates at home, the necessaries of life, which are the real constituents of wealth, may be idly consumed; the industry which might be employed to increase the stock of a people, may be suspended, or turned to abuse.

Adam Ferguson, An Essay on the History of Civil Society (1767), Part V, Section V

No comments:

Post a Comment

Please understand that this weblog runs on a third-party comment system, not on Blogger's comment system. If you have come by way of a mobile device and can see this message, you may have landed on the Blogger comment page, or the third party commenting system has not yet completely loaded; your comments will only be shown on this page and not on the page most people will see, and it is much more likely that your comment will be missed.