Many economics textbooks claim that a function of money is to measure the value of goods. In fact, the value an individual attaches to a given sum of money or to any kind of good (including gold) is based on a subjective judgment and is without physical dimensions.
Indeed, if we look at the failure of the welfare state, the persistence of the business cycle, runaway inflation, and out-of-control debt, we'll see that each is addressed and predicted in ' Human Action .'
If one looks at the catastrophic consequences of the great paper-money inflations, one must admit that the cost of making and holding gold is the minor evil. It would be futile to retort that these catastrophes were brought about because the regime merely used fiat money improperly.
Socialism and interventionism have not yet succeeded in completely eliminating capitalism. If they had, we would, after centuries of gains in prosperity, rediscover the meaning of hunger on a massive scale.