Why is Money Not an Economic Resource?

The reason money is not an economic resource is because it is not productive. Have you ever seen a copywriter write with money or, an employee transporting goods from a factory with money instead of a logistics vehicle?

We create money, at least through the central bank. It’s just like we produce goods and services. But, unlike semi-finished goods, we cannot use money to produce other goods.

But, indeed, in the modern economy, money plays a vital role. With it, we store wealth. We also use money to facilitate transactions, for example to pay for the goods we buy. And, with money, we can judge the value of an item because money functions as a unit of account.

Money is not a productive resource

Money may be scarce and the central bank is responsible for printing it. If it is available in abundance – the central bank prints a lot of money – it can lead to high inflation and even hyperinflation.

Money does not contribute directly to production. Although it is rare, we cannot use it directly as an input or help the production process. For example, car manufacturers use aluminum inputs to produce car frames, not money. Likewise, …