Money is indispensable to a long-circuit heavy load energy system. It must be used when a sufficient surplus is being produced to allow a margin for exchange, and cost of transport, over a considerable distance. Money represents a storage battery when idle, and a generalized mode of the conversion of energy when it is in motion, with a function of equating time and space.
About this quote
- What does it mean?
- Money functions as an energy storage system, allowing value to be saved and moved across time and distance for trade.
- In plain terms
- Money stores and moves value like electricity in a wire.
- What can you take from it?
- Money acts as a storage and transmission medium for economic energy.
Where it applies
Putting it to work
Questions to consider
- How does money store value over time?
- What makes a good exchange medium?
Another view
This is a metaphor that simplifies the complex social role of money.
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