“No man but a blockhead ever wrote except for money.” (Dr Johnson)
This makes good senseāuntil you start to think about it. The simple truth is thatĀ money can come in many forms. To think sensibly, we need to recognise that there are 3 distinct types of money.
- Survival money. This is the type of money that allows Johnson’s bald comment to make sense. There are societies (like ours) in which everyone needs money to survive.
- Spending money. This is money over and above survival money, which allows people to lead more fulfilling lives. In general, the more the better.
- Status money. This is money you are never going to be able to spend, because you have so much of it. Its main use is to give people who have nothing else going for them, something to be proud of.
Questions about the borders between the different types are irrelevant. The point is simply to grasp the distinction.