What Is Money a Proxy For?
What Is Money a Proxy For? Money is a proxy for the resources you can claim from other people and the economy, but we routinely ask that proxy to represent far more than it can accurately measure. Money allows people to exchange radically different goods and services through a common unit. Food, housing, labor, transportation, expertise, entertainment, and countless other resources become easier to compare and trade when they can all be assigned prices. That ability is enormously useful. The confusion begins when the same numerical system is extended from measuring exchange into measuring success, security, freedom, status, contribution, or personal worth. Money Makes Unlike Things Comparable Imagine one person grows tomatoes, another repairs bicycles, and a third designs websites. Without money, an exchange requires the people involved to want what the others offer at the same time. Money removes that constraint. The tomato grower can sell produce to one person and use the proceeds to...