Aristotle’s discussions about money, economics, and ethics are woven throughout his texts rather than condensed into succinct quotes. However, some passages from his works encapsulate his views on these subjects. Below are paraphrased summaries of key points and, where possible, more direct quotes that reflect Aristotle’s philosophy regarding money:

1. On the Nature of Money:

• Aristotle explained money’s role as a medium of exchange that has become widely accepted in order to facilitate the exchange of goods and services. This idea is discussed in his work “Politics,” where he mentions, “Money has become by convention a sort of representative of demand; and this is why it has the name ‘money’ (nomisma)—because it exists not by nature but by law (nomos) and it is in our power to change it and make it useless.”

1. On Wealth-Getting:

• In “Politics,” Aristotle distinguishes between natural wealth-getting, which is a part of household management and aims to provide for a self-sufficient life, and a form of wealth-getting that is unnatural. He says, “The most hated sort, and with the greatest reason, is usury, which makes a gain out of money itself, and not from the natural object of it. For money was intended to be used in exchange, but not to increase at interest.”

1. On the Purpose of Wealth and Limitation:

• Within “Nicomachean Ethics,” Aristotle discusses the concept of a mean in all things, including the acquisition of wealth. He posits that wealth is a tool for achieving the good life, implying that the pursuit of wealth should have moral and practical limits.

1. On Money and Ethics:

• Also, in “Nicomachean Ethics,” Aristotle delves deeper into the ethics of money and wealth, suggesting that true wealth lies not in abundant possessions but in living a virtuous life. He emphasizes that virtues, rather than material wealth, are what truly enrich one’s life.

Aristotle’s insights on money, wealth, and ethics are more nuanced and spread out in his works than can be fully captured in short quotes. His perspective is deeply rooted in the broader context of his ethical and political philosophy, focusing on the good life, the role of the community, and the importance of virtue.

Aristotle’s thoughts on money can be found primarily in his works “Politics” and “Nicomachean Ethics,” where he explores the nature and roles of money in society, touching upon concepts that are insightful even in today’s economic discussions. His perspective on money encompasses its function, ethical implications, and the distinction between natural wealth-getting and what he saw as its unnatural counterpart.

Functions of Money

Aristotle recognized money as a creation of law and social convention, serving as a medium of exchange that facilitated trade. He understood that the diversity of goods and services necessitated a common measure to ensure fairness in transactions, making trade more efficient compared to barter. Money, according to Aristotle, was invented to fulfill this need, acting as an intermediary that represented the value of different goods and services.

Ethical Implications

Aristotle differentiated between what he saw as the natural acquisition of wealth, which aligns with the needs of life and the household, and an unnatural form of wealth acquisition aimed at unlimited wealth-getting. The latter, often associated with the practice of usury (charging excessive interest on loans) and mercantile activities focused solely on profit maximization, was criticized by Aristotle. He argued that such practices went against the intended function of money as a medium for facilitating necessary exchanges, instead turning it into an end in itself. For Aristotle, the pursuit of wealth for its own sake was unnatural and morally problematic because it disregarded the virtuous life’s ethical and communal goals.

Natural vs. Unnatural Wealth-Getting

Aristotle made a clear distinction between “economics” (oikonomikos), which he saw as the art of managing a household and acquiring wealth in ways that support a virtuous and fulfilling life, and “chrematistics,” which he associated with the unnatural accumulation of wealth. While the former is necessary and natural, aimed at securing the means for a good life, the latter is unlimited and often involves exploiting the instrumental use of money to accumulate more wealth than one needs, losing sight of the ethical and social implications.

Aristotle’s philosophy on money thus centers on the balance between the utility and necessity of money in facilitating exchanges and the ethical considerations surrounding its acquisition and use. He promotes a vision of economic activity that supports the well-being of the individual and the community, warning against the unchecked pursuit of wealth that can lead to moral and social degradation. This nuanced view offers a foundational perspective on economic ethics that remains relevant in contemporary discussions on the purpose and impact of economic activities.