Meaning: Alfred Marshall, a prominent economist of the late 19th and early 20th centuries, made significant contributions to the field of economics through his work on the principles of supply and demand, as well as his development of the concept of price elasticity. The quote you provided reflects Marshall's perspective on the evolving relationship between inventions, money, and labor in the context of economic value.

Marshall's assertion that "the real value of money is better measured for some purposes in labour than in commodities" suggests a departure from the traditional notion of money as a direct measure of the value of goods and services. Instead, he emphasizes the importance of considering the role of labor in determining the true worth of money in certain contexts.

In the context of Marshall's time, the Industrial Revolution had ushered in an era of unprecedented technological innovation and the mass production of goods. This period of rapid industrialization led to a substantial increase in the efficiency and productivity of labor, as well as the proliferation of new inventions and technologies. Marshall, in his quote, acknowledges the transformative impact of these inventions on humanity's ability to harness and manipulate nature for economic gain.

By highlighting the significance of inventions in augmenting human power over nature, Marshall implies that the traditional understanding of the value of money, which is primarily based on the exchange of commodities, may need to be reevaluated. In a world where technological advancements have significantly altered the production and distribution of goods, the direct correlation between money and commodities may no longer fully capture the complexities of economic value.

Marshall's suggestion that "the real value of money is better measured for some purposes in labour than in commodities" can be interpreted as an advocacy for considering the role of labor as a fundamental determinant of economic value. In the context of advanced industrial economies, where the contributions of human labor are often overshadowed by the abundance of mass-produced goods, Marshall's perspective serves as a reminder of the intrinsic value of labor in the creation and exchange of goods and services.

Moreover, Marshall's emphasis on labor as a measure of the real value of money aligns with the broader economic concept of the labor theory of value, which posits that the value of a commodity is derived from the amount of labor required to produce it. While this theory has been subject to critique and alternative interpretations, Marshall's assertion underscores the enduring relevance of labor in shaping economic value, particularly in the wake of technological advancements and industrial progress.

In conclusion, Alfred Marshall's quote encapsulates his nuanced understanding of the evolving dynamics between inventions, money, and labor in the context of economic value. By highlighting the transformative impact of inventions on humanity's power over nature and advocating for a reconsideration of the role of labor in determining the real value of money, Marshall's perspective offers valuable insights into the complexities of economic value in the midst of technological progress and industrialization.