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Lex maniac

Investigating changes in American English vocabulary over the last 40 years


(2000’s | businese (finance) | “sell,” “make money off of,” “put a price tag on”)

This was a rarefied financial term as late as the nineties, used almost entirely in discussions of gold prices and government debt. Originally, it was even more literal; you monetized gold by making it into coins, thus converting it into legal tender. By the seventies, though, “monetize” basically meant “liquidate.” There’s the kind of money that you can go out and spend, and the kind of money that is otherwise occupied, like the value of your property, a stake in a business, etc. The former is referred to as liquid; more or less what economists used to call “M1” (for all I know they still do). The government is in a unique position when it comes to controlling the money supply, so it’s not much of a stretch to talk about government “monetizing” debt by selling bonds (for example). Or the government might monetize a portion of its gold reserves by selling it off. When gold prices shot up in the late seventies, a process that has continued to this day in fits and starts, banks and nations alike found an easy way to produce ready cash. That made “monetize” something of a dirty word to conservatives, who see disastrous inflation as the inevitable consequence of any expansion of the money supply.

Monetizing has long involved selling, and it still does. Sometimes the sale was indirect, and this notion has grown utterly commonplace, as the term has also come to mean something like “commodify” (convert into a commodity that can be sold — an extra step). Sometimes the sale is more indirect still, as an on-line business selling advertising on the basis of the number of page views it attracts. Only the most hardened cynic would regard this as a literal sale of the customers, but the practice definitely trades on their existence, and “monetize the customers” has a rather sinister sound. There is another meaning I should mention, although it has always been more marginal: assign a value to. You monetize something by figuring out what it is worth; whether you go on to sell it for that price is irrelevant.

For decades this word belonged to governments, corporations, and large financial institutions. It still does, but no longer exclusively. It has taken a popular turn, and nowadays a small business or an individual can indulge just as easily. An artist might monetize her work by selling it on-line, for example. The growth of “monetize” has coincided with the growth of the internet as a marketplace, and that is not a coincidence. Before 2000, anyway, the word had a technical sound that might convince the unwary that the speaker had arcane financial knowledge. For those who wanted to appear cutting-edge, or just edgy, it was an easy to word to adopt. By the time everyone figured out all you meant was “exploit for personal gain,” you’d be sitting pretty in the Caribbean somewhere.

When a term from a certain professional jargon (finance, in this case) slides into general use, it cannot help but broaden its meaning, applying to more areas or simply taking on new definitions. (Examples: ahead of the curve, curate, template.) In one way, the meaning of “monetize” hasn’t really changed, but it is an exotic word that gravitated naturally to an exotic means of commerce: the web used as a means of selling just about anything. “Monetize” represents yet another appropriation of specialized vocabulary by the masses, and in such cases one feels the loss. Our language cries out for terms that fill narrow niches and allow us to describe very particular states, categories, or objects; every word that becomes less precise detracts from our ability to understand what’s going on. As “monetize” has become sloppier, it has become more crass, at least to my ear. I wouldn’t say the word was ever noble, exactly, but it was reserved for relatively grand situations, not the property of any third-rate businessman trying to take advantage of a new market.

I must remember to thank my father, not just for raising me but for suggesting “monetize” many months ago. Sometimes these things take a while to germinate.


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