13-5b2 Money is usable in every line of production

“His labor, on our assumptions (wherein all factors are specific and the capitalist doesn’t exist), may be a specific factor, but his money is usable in every line of production.”develop

“When the capitalists have saved money (“money capital”), however, they are at liberty to purchase factor services in any line of production. Money, the general medium of exchange, is precisely nonspecific.”

Next:

• 13-5b2a Because of money, the concept of rate of return can be abstracted to the ratio between present goods exchanged against future goods in general
• 13-5b2.1 Saving (in money) can literally save you
• 13-5b3 Labor is uniquely the nonspecific factor

Related:

• 13-1a3a2e2 The introduction of money creates the money market wherein everything can be exchanged for anything in the economy
• 13-9a All goods are somewhat substitutable for one another thanks to money