The Atlantic

How Money Became the Measure of Everything

Two centuries ago, America pioneered a way of thinking that puts human well-being in economic terms.
Source: rangizzz / oasis15 / Shutterstock / Katie Martin / The Atlantic

Money and markets have been around for thousands of years. Yet as central as currency has been to so many civilizations, people in societies as different as ancient Greece, imperial China, medieval Europe, and colonial America did not measure residents’ well-being in terms of monetary earnings or economic output.

In the mid-19th century, the United States—and to a lesser extent other industrializing nations such as England and Germany—departed from this historical pattern. It was then that American businesspeople and policymakers started to measure progress in dollar amounts, tabulating social welfare based on people’s capacity to generate income. This fundamental shift, in time, transformed the way Americans appraised not only investments and businesses but also their communities, their environment, and even themselves.

Today, well-being may seem hard to quantify in a nonmonetary way, but indeed other metrics—from incarceration rates to life expectancy—have held sway in the course of the country’s history. The turn away from these statistics, and toward financial ones, means that rather than considering how economic developments could meet Americans’ needs, the default stance—in policy, business, and everyday life—is to assess whether individuals are meeting the exigencies of the economy.

At the turn of the 19th century, it did not appear that financial metrics were going

You're reading a preview, sign up to read more.

More from The Atlantic

The Atlantic6 min read
The Unraveling of Donald Trump
As the impeachment inquiry intensifies, some associates of the president predict that his already erratic behavior is going to get worse.
The Atlantic6 min read
Democrats Are Hypocrites for Condemning Trump Over Syria
Presidential hopefuls blasted Trump for abandoning the Kurds—but want the U.S. to pull out of Afghanistan under similar conditions.
The Atlantic8 min read
What Ballooning Carbon Emissions Will Do to Trees
Many forecasts for climate change assume that tropical forests will continue to soak up carbon dioxide as the world warms. What if they don’t?