Was Soddy wrong about money not being a store of value?
The accusation that money is not a store of value stems from observing its performance over time. While a banker may consider money a reliable store, a physicist sees it differently. Money is a mere token, a promise, a claim on future energy and resources. Its value is not inherent but derived from the productive capacity of society. When a society lives on debt, it creates a façade of wealth, but this is a 'virtual wealth' that cannot endure indefinitely. The physical reality is that value is derived from tangible inputs – labor and energy. To confuse the token with the substance is to invite economic instability, a lesson history repeatedly teaches.
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