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 readPolitics
Alexandria Ocasio-Cortez’s Self-Limiting Revolution
Knock Down the House set out to show an inspiring political movement—but instead revealed its boundaries.
The Atlantic5 min readPolitics
To China, All's Fair in Love and Trade Wars
Just how bad are things between the United States and China? Over an evening beer in Beijing this week, a friend and I debated which prominent American company China would whack first. It’s a serious question—and the answer could be the next ugly ste
The Atlantic5 min read
Busy Tonight Ended Just as Its Host Was Finding Her Voice
As soon as E! canceled her late-night talk show Busy Tonight, the host and actor Busy Philipps addressed the news—where else?—on Instagram. It’s where she thrives, as one of the first and most prominent celebrities to have capitalized on social-media