Rousseau and Money

Rousseau is consistently mistrustful of money. He studies its nature and its functions, stressing that it cannot be identified with real wealth. Money, for Rousseau, is merely a sign. It serves as a unit of account and a medium of exchange, which are necessary functions in any society where wealth circulates on the market. Rousseau’s condemnation of money stems from the consequences of its use and the desire it elicits. Because money fosters amour-propre, it brings about two of modern society’s fundamental ills: inequality and corruption. Rousseau sketches two paths of escape from these evils: first, maximizing in-kind transactions for as many kinds of exchange as possible, including taxes; and second, using freely available goods in small, self-governing communities founded on moderation and the guarantee of liberty. While Rousseau’s treatment of money cannot replace the theoretical accomplishments of economists, it does illuminate problems overlooked or forgotten in their work.