“It’s just like in Peter Pan. We clapped our hands, we all believed, and poof! there it was.” That was my introduction to the concept of money, the first time I really thought about what money is, courtesy of my college economics professor. He actually asked us to close our eyes, clap our hands, and believe in money; I did, it worked. Of course it helped that I had money in my pocket.
My professor’s point was to remind us that money, so often treated as an integral cog in the machine of society, is a conceptual invention of our collective imagination. It is also a physical invention: we do, quite literally, grow money from trees.
As an extension to physical money, we have come to believe in the stock market and its array of securities options. The complexity of our economic system makes understanding it a daunting task. But a key part of advancing environmental sustainability involves confronting the economic structure that governs society. If we understand the functions of capitalism, perhaps we can meet these functions in a more sustainable way.