Reflect on the question, ‘How much are you worth?’ Today, thinking in monetary terms seems logical, as money is omnipresent—it serves as a payment method, a success metric, and a social status indicator. Quite rightly so, as everything around us can be converted into money. I could sell the laptop I used to write this for a certain sum. You could sell the device you’re reading this on for a set price. You could even sell your ability to work (labor power) and earn money for the five minutes spent reading this.
Your time equates to money. Depending on how you use it, you either gain or lose money. (In economic terms, there’s no neutral time where you neither earn nor lose money.) Those who earn money contribute to wealth—for themselves, their employers, and the economy. Some people can both spend and earn money; others can earn no more or are too young to do so. Some have never had the chance to make money for various reasons. The difference between money-earners and non-money-earners in conventional economics is crucial to explore if we aim to ascertain whether we are merely money.
According to the no money, no importance view, society may be divided into money-makers and non-money-makers. Simply stated, money-makers actively contribute to the wealth-generating process. They engage in the economy in some capacity. Conversely, non-money-makers do not actively partake in money-making. Regarding work as a money-making activity, three groups generally fit the non-money-makers category: future workers (children who will eventually join the workforce and unemployed individuals), former workers (like pensioners), and non-workers (those physically or mentally unable to work). This division, outlined in the diagram below, is particularly helpful when identifying who remains hidden from the economy.
So, who remains invisible to the economy? Active workers are not excluded from economic discussions, as they are the economy’s backbone. Therefore, if money-makers are essential, non-money-makers are deemed less significant. Yet, among non-money-makers, future workers are viewed as untapped resources by the economy. They don’t currently participate actively in the economy or earn money but have the potential to do so later. They are seen as long-term investments that will eventually be as valuable as current workers, if not more so.
In conventional economics, a term called human capital signifies a person’s economic value due to their skills, knowledge, abilities, and status. In simpler terms, human capital refers to the societal segment that contributes or could contribute to economic development. This concept further divides society from an economic standpoint. The intriguing aspect of this term is that it only encompasses individuals who possess economic value. Thus, human capital is the part of society deemed useful in the wealth creation process. Consequently, some non-money-makers are viewed as more important than others—namely, children and the unemployed.
Human capital is often used to justify investing in individuals who can or will potentially earn money. After all, investments are made with the expectation of returns exceeding what was invested. Therefore, it makes sense to invest in those who will generate income. Investment in a person (such as through education or training) might not lead to immediate profit, but they may become more qualified and skilled in the future, thus more productive for the economy. As a result, human capital comprises only those parts of society that can generate more money than was invested in them (see the diagram below).
Comments
4 responses to “Is It All About the Money?”
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Money’s the name of the game, eh? If you ain’t raking it in, you might as well be invisible – just like my last tax return. 😂💸
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Just what we needed – a deep dive into how the worth of a human can be boiled down to a price tag. Bravo, I always thought my life’s purpose was to boost GDP, not to enjoy a lovely cup of coffee! ☕💸
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Isn’t it just delightful how we’ve turned human beings into mere assets? 🤔 I suppose next they’ll start charging us rent for occupying space on this planet—talk about a capitalist holiday! 💸
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Isn’t it just delightful how we can now measure our worth like we’re haggling at a flea market? 💸 If only my charm and wit could be converted into euros, I’d be rolling in it! 😂
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Money’s the name of the game, isn’t it? I mean, who knew our worth could be calculated in euros and dollars? 💸 Just call me a future worker in the economy of ‘do I pay rent or buy coffee?’ 😂
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