Georg Simmel - The Philosophy of Money

The Philosophy of Money

In this major work, Simmel saw money as a component of life that helped us understand the totality of life.

Simmel believed people created value by making objects, then separating themselves from that object and then trying to overcome that distance. He found that things that were too close were not considered valuable and things that were too far for people to get were also not considered valuable. What was also considered in determining value was the scarcity, time, sacrifice, and difficulties involved in getting the object.

For Simmel, city life leads to a division of labor and increased financialization. As financial transactions increase, some emphasis shifts to what the individual can do instead of who the individual is. Finanical matters are in play in addition to emotions.