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In the modern world, material is only wealth if you can get rid of it. The British miner cannot eat his coal, nor clothe his children with it, nor build his house with it. If coal is to mean for the British miner food and shelter and clothing, he must get rid of it. Get rid of it, that is, to someone who has money, sell it. But how is that someone to get money? He can only get it by one means: By getting rid of his material to someone who has money, who can only get money by getting rid of his material - round the world.

Norman Angell#35

EconomicsTradeWealth

About this quote

What does it mean?
Wealth requires exchange; goods must be sold for money to provide value to the owner.
In plain terms
Things are wealth only if you can sell them.
What can you take from it?
Value depends on exchange, not possession.

Where it applies

  • understanding markets
  • analyzing poverty
  • studying trade

Putting it to work

  • study supply chains
  • trace transactions
  • value currency

Questions to consider

  • What makes something wealth?
  • Is value only monetary?

Another view

Some goods have use value without market exchange.

More from Norman Angell

  1. I doubt whether the public has fully grasped the change which has come over the nature of modern wealth. If the nature of that change were grasped by our publi…

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  2. The fact that men are naturally quarrelsome is presumed to be an argument against such institutions as the League. But it is precisely the fact of the natural …

    Permalink to quote #36
  3. The economic difficulty of the modern world is not shortage of materials but the organization of their exchange and distribution; distress arises, not from sca…

    Permalink to quote #33

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