2019年12月3日火曜日

Differences between Money and Capital

I was looking for information on differences between Money and Capital and found the following articles.



"Big Difference Between Money And Capital" by Jason Trennert (Forbes)
DATE OF QUOTE: Dec 3, 2019

A quick definition from an academic website put it this way: “Capital comprises the physical and non-physical assets (such as education and skills) used in making goods and services. Money is primarily a means of exchanging one good for another. Capital is measured in monetary terms, and since money (cash) buys physical assets (for example, buys a factory), capital is often thought of as money. But strictly speaking, they are different concepts.” 

Said another way, capital involves risk and creates jobs. Accumulating money on the balance sheets of large corporations does not.

SOURCE:
https://www.forbes.com/sites/greatspeculations/2011/08/26/big-difference-between-money-and-capital/#20e4f7b33dc0




"The Difference Between Money and Capital in the American Economy" by Jed Chancey (MIC)
DATE OF QUOTE: Dec 3, 2019

 Capital is the real resources that producers use in order to make the goods that we all consume: things like factories, machine tools, trucks, and roads. All capital exists in a specific form. Money on the other hand is non-specific; it can be used to buy anything that is available in the marketplace, including capital goods....

SOURCE:
https://www.mic.com/articles/7970/the-difference-between-money-and-capital-in-the-american-economy

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