What Money Shouldn’t Buy

Venmo impersonally lets us ask for a payback.

So, instead of covering a Zipcar ride to the hospital, through Venmo, an individual asked for the money from the friend that had the emergency surgery. Slightly similarly, days after someone ordered a surprise round of drinks at dinner, they sent a Venmo request for repayment to everyone.

We could say that sometimes a request for money is inappropriate.

What Money Should Not Buy

Stanford scholar Ruth Satz tells us that a more expensive ticket to the Titanic included lifeboat access while a cheaper one did not. Harvard professor Michael Sandel says it is immoral to sell a kidney.

We can also ask if, instead of a bottle of wine, it’s okay to give your dinner host a $20 bill. Should you pay kids to read books? Is it okay to charge for using the high speed lane during rush hour?

Our Bottom Line: Markets

When money is inappropriate, it means we want to sidestep the market. Defined as the process through which a price and quantity are determined with supply and demand, markets facilitate distribution. They work when money provides information about value and land, labor, and capital.

As a result, when we prohibit money, we have a tradeoff. Yes, advocates rightly cite ethical concerns. After all, why should money determine if you can or cannot use a lifeboat? But there is always another side. The expense of more lifeboats could mean pricier fares. Selling kidneys could make more available.