The social ambiguity of money: empirical evidence on the multiple usability of money in social life

Abstract

In regard to the purpose of money use, economic theory provides a functionalist answer, while a dominant sociological view focuses on culture. However, Simmel noted the paradoxical nature of money in this respect. Money brings together both quantity and quality; therefore, it simultaneously has different potentialities for its usage. We conducted an exploratory factor analysis by using a representative sample (n = 2000) of the population in Austria to explore the potentialities of money usage. We found seven factors: freedom, community, status, institutional control, conflict, work-related control and household control. A discussion of the factors reveals the simultaneous, ambiguous existence of the qualitative and quantitative potentialities of the usage of money. We conclude that the ambiguity of money can only be described in all its contradictoriness by distinguishing between the concrete earmarking money for specific social purposes (Zelizer) and the potentially unspecific, open usability for alternative concrete or fictional purposes (Simmel).

KEYWORDS:

• Sociology of money
• economic sociology
• money usability
• functions of money
• earmarking money

Acknowledgements

We appreciate the thoughtful comments of the reviewers, the editors and the discussants at workshops and conferences in New York (SASE), Barcelona (ESA), Darmstadt (Schader Foundation), Vienna (Viennese Sociological Association), Graz (School of Business, Economics and Social Sciences, University of Graz), Göttingen (Section Economic Sociology, German Sociological Association) and Frankfurt (CashCon-Conference). We also thank Max Haller and Markus Schweighart for helpful methodical suggestions.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Data availability statement

The data associated with this study are available upon reasonable request.

Additional information

Funding

This work was supported by Austrian Central Bank, Anniversary Fund: [Grant Number 17080].

Notes on contributors

Klaus Kraemer

Klaus Kraemer is full professor of Applied Sociology: Economy, Organisation, Social Problems at Department of Sociology, University of Graz, Austria. His current main areas of research are economic sociology, sociology of money, and sociology of modern capitalism.

Luka Jakelja

Luka Jakelja is university assistant and doctoral candidate at the Department of Sociology, University of Graz. His main research areas are economic sociology and sociology of money.

Florian Brugger

Florian Brugger is an university assistant at the Department of Sociology at Karl-Franzens-University Graz. He works in the fields of economic sociology, sociology of markets, sociology of money, development economics, international capital flows, economic theories and their impacts, and technological progress.

Sebastian Nessel

Sebastian Nessel is currently a lecturer at the Department of Sociology at the University of Graz and co-coordinator of the European Sociological Association´s RN09 “Economic Sociology”. Prior to this he was an assistant professor at the University of Graz. His research interests are the sociology of money and finance, institutional and field analysis, and social movement research. Currently he works on consumer capitalism in the 27 EU Member States.