The great merit of gold is precisely that it is scarce; that its quantity is limited by nature; that it is costly to discover, to mine, and to process; and that it cannot be created by political fiat or caprice.
Interpretation
Gold's value comes from its scarcity and the difficulty of obtaining it, which prevents it from being artificially produced.
In this quote, Henry Hazlitt emphasizes that the worth of gold lies in its limited availability and the labor-intensive process required to extract and refine it. Unlike currency that can be easily printed or manipulated by governments, gold's intrinsic value is derived from its scarcity and the natural limitations of its supply, which contributes to its status as a stable form of wealth.
In practice
In a financial seminar discussing the importance of investing in precious metals.
A man with a scant vocabulary will almost certainly be a weak thinker. The richer and more copious one's vocabulary and the greater one's awareness of fine distinctions and subtle nuances of meaning, the more fertile and precise is likely to be one's thinking. Knowledge of things and knowledge of the words for them grow together. If you do not know the words, you can hardly know the thing.
Mere inflation-that is, the mere issuance of more money, with the consequence of higher wages and prices-may look like the creation of more demand. But in terms of the actual production and exchange of real things it is not.
Economics is haunted by more fallacies than any other study known to man. This is no accident. The inherent difficulties of the subject would be great enough in any case, but they are multiplied a thousandfold by a factor that is insignificant in, say, physics, mathematics or medicine - the special pleading of selfish interests.
The only way we could remember would be by constant re-reading, for knowledge unused tends to drop out of mind. Knowledge used does not need to be remembered; practice forms habits and habits make memory unnecessary. The rule is nothing; the application is everything.
If a government resorts to inflation, that is, creates money in order to cover its budget deficits or expands credit in order to stimulate business, then no power on earth, no gimmick, device, trick or even indexation can prevent its economic consequences.
Economics is haunted by more fallacies than any other study known to man
Poor people of all colors are getting poorer and our communities are getting more toxic. There is a misconception that to grow our economy we will have to do business as usual, because cleaning up the environment, mitigating climate change is just too costly. Well, I say the business of poverty is just too expensive a bill for humanity to pay any longer.
Constructive trade, the two-way exchange of goods and services, is the most efficient and logical way for each nation . . . to build a stable prosperity, a prosperity based not on aid, but on mutually beneficial economic contacts.
I get heartfelt thanks from all kinds of people. Today I heard from a waitress in Georgia who has lost her job and is trying to figure out how her local bank can change the terms on her credit card, and I heard from a physicist at a major research university who wants to explain a better theory of financial stress tests.
In a globalized economy, jobs no longer need a passport, but workers do.
The laws and conditions of the production of wealth partake of the character of physical truths. There is nothing optional or arbitrary in them ... It is not so with the Distribution of Wealth. That is a matter of human institution solely. The things once there, mankind, individually or collectively, can do with them as they like.
We've used up a lot of bullets. And we talk about stimulus. But the truth is, we're running a federal deficit that's 9 percent of GDP. That is stimulative as all get out. It's more stimulative than any policy we've followed since World War II.
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