I already have a page describing the concept of ‘wealth‘ in an economic context as used in this blog, as basic all that which can be bought with money. This is a standard definition of the term as used in economics.
Now for a new term rather than a standard definition: ‘hard wealth’.
In simple terms, this is wealth, as described in the ‘wealth’ page that also meets the criteria of being both durable in that it there is a consensus believing this ‘wealth’ retains value over time, and tangible in that you can hold it in your hand.
These criteria can be subjective, which leaves room for some different of opinion as to whether some form of wealth is, or is not, ‘hard wealth’, just as there will also be difference of opinion on the value of many forms of wealth.
A classic example of solid wealth would be gold, with ownership of land an alternative example.
An example of wealth, as in “that which can be obtained with money” that does not qualify as ‘solid wealth’ would be right to park for one hour in a metered space. Clearly that ‘wealth’ does not retain the value once the original hour is over.
Another example would be a restaurant meal. The meal itself does not sustain value, although the farms that produce the food, and restaurant that prepares and serve the meal do retain value in that both can continue to produce food, even though the food produced only retains value for a short time, the ability to continue to produce means no such limitation applies to farm or restaurant.
What is the use of the concept ‘hard wealth’?
That which meets the criteria as ‘hard wealth’ is the basis of the creation of fortunes, the basis of building long term wealth that creates class division and inequality. The study of the moment of this ‘hard wealth’ enables prediction as to whether the gap between rich and poor will widen or narrow.