It is not for its own sake that men desire money, but for the sake of what they can purchase with it.
Meaning
Smith, writing in 1776, argues that money is valued as a tool for obtaining goods. That makes a useful budgeting test: before a purchase, name what it truly buys for you, then compare it with other uses of the same funds.
Source: The Wealth of Nations (1776)
About the author
(1723–1790) was a Scottish economist and philosopher often regarded as the father of modern economics. His seminal work, "The Wealth of Nations," laid the foundation for classical economics and introduced key concepts such as the division of labor and the invisible hand of the market. Smith argued that individuals pursuing their own self-interest could unintentionally benefit society as a whole. His ideas have had a lasting impact on economic theory, policy, and global trade systems. In addition to economics, Smith also explored moral philosophy, emphasizing sympathy and ethical behavior. His contributions continue to shape economic thinking and debates around capitalism and free markets.
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