Why is money not considered to be a capital resource in economics? Money is not a capital resource because it is not productive—it facilitates access to resources but does not contribute directly to the production of products and services. The human contributions that directly engage in manufacturing are referred to as labor. Because money is not a productive resource, it is not capital in the sense that economists understand capital. While money can be used to purchase capital, capital assets (such as machinery and tools) are what are used to manufacture commodities and services. Money is only a facilitator of trade; it is not a productive resource in and of itself. Because the term "capital" primarily refers to tools, machinery, and other productive equipment, money is not considered a capital resource in economics. In economics, money refers to a medium of exchange that can be used to buy goods and services and has a store of value. Money isn't a resource in the economic sense. It's a resource that's required to purchase supplies that will eventually be used in the production of goods and the provision of services. Land, labor, capital, and entrepreneur are examples of components of production. You could also argue that money is essential to get a firm off the ground, which is correct. But it isn't an economic resource or a production element. Instead, we use the money into paying laborers or purchasing other production-related items.