Should the USA be on a gold standard with dollar established at a fixed amount of gold that cannot be changed?

[DWornock]

In 1920 gold was approximately $20 per troy oz. Common labor was $1 per day, and the best fine worsted men’s wool suits were about 20. Therefore, an ounce of gold would buy 20 days of common labor or the best men’s wool suit. Today the price of gold is about $1,850. At Saks 5th Avenue, that will buy you a top quality men’s wool suit and at $10 per hour, it will buy you about 20 days of common labor.

On that basis the dollar has lost almost 99% of its value in the last 100 year while gold had maintained it value. The value of gold does fluctuate but it doesn’t exceed double its average value nor does gold fall below half of its average value.

[KelleyNice]

Of course the USA should be on the gold standard. All intelligent people that haven’t been indoctrinated by the false Keynesian monetary theory know that. All fiat currencies collapse to their intrinsic value; that is, the value of the paper they are printed on and so will the dollar. There are no exceptions.

Although gold can fluctuate, it maintains most of its value. 100 years ago an ounce of gold or $20 would purchase 20 days of common labor at the going rate of $1 per day. Today and ounce of gold will still purchase about 20 days of common labor at the going rate of $10 per hour. However, today $20 will only purchase 2 hours of common labor.

Furthermore, if fixed a defined amount of gold, a gold standard holds government spending in check and prevents the government from stealing from the public by counterfeiting more paper money.

[jengeorge26]

Yes we should

[tartaarsaus]

No, because a gold standard is absolutely idiotic. The supply of it does not keep up with the rate at which the economy grows.


More importantly, basic accepted monetary economics (with immense theoretical and empirical evidence) dictates that a independent central-bank controlled currency leads to lower inflation rates on average.


As such, independent central banks controlling the money supply is unequivocally superior, and has been accepted as superior in academia for many decades already.

[DWornock]

Of course, a system where prices increase 100 times in 100 years, an average annual rate of 4.6% annually, must be better than stable prices.

[tartaarsaus]

The inflation rate during the gold standard literally was not stable.

Your idea that a gold standard means zero inflation rate is just completely false.

Also, the idea of independent central banking being in control of money supply really started to get traction in the 1970s. Before that, there literally was a gold standard in the form of the Bretton-Woods. And guess what? It was economically terrible

[DWornock]

I don't know if you actually believe what you are saying or if you a shill for the international bankers that own the Federal Reserve. Either way, you are not likely to change.

[tartaarsaus]

I’m just far more educated on this matter than you are 🤷🏽

[NamerOfStars]

No. The gold standard became obsolete the instant gold's electroconductive properties were discovered. You need something that doesn't just have the requisite rarity, but also the corresponding uselessness. You can't drive a cold car or fight with a gold sword. But since that also would impose an urtimate limit on tde number of dollars, it means that inflation would soon destroy your economy. You need something whose quantity increases, but slowly, and in a controlled manner.

Off the top of my head, the only thing I can think ef that meets all three criteria is nuclear waste.

[Anonymous]

Nope because then a country like Russia or China could strengthen their economies with gold and devalue the American economy by flooding the market with gold causing mass inflation.
To be honest the gold standard is outdated, a relic from the past. What backs American money is its 20 aircraft carriers.

[888theGreat]

1) yes , it would limit wasteful Gov't spending

2) it would make wars too expensive to wage

3) When US economy collapses , they will have to go back to Gold and start a new system.

However Govt will start a cashless digital crypto , outlawing private ownership of Gold and Silver bullion as well as Bit coin and other cryptos to eliminate competition.

[slatyb]

No, that doesn't work at all. The economy has grown far faster than the gold supply. There would have been tremendous deflation in both prices ans wages, making it impossible for people to retire debt.

[OldWorldOrder]

No, because then when we begin space mining and find a bunch of gold, it will crash the economy just like the Spanish economy after they brought a bunch of gold back from the New World.

[DWornock]

Finding something that is valuable can only benefit an economy. Some individuals may be harmed but overall the world is better off. Obviously, prices would increase, maybe greatly increase, and the first people would benefit the most.

[OldWorldOrder]

Maybe you should look up what I said about the Spanish economy after they brought back big boatloads of gold.

[DWornock]

I read what you wrote and I don't doubt that parts of their economy may have been harmed. But more wealth is not harmful. It is famine that is harmful; not a bountiful harvest. Advances in technology results in unemployment; at least for while. But you want more people working replace backhoes with shovels. Even better replace the shovels with spoons. However, if you do, more people may be employed but people will have less.

[OldWorldOrder]

You fundamentally misunderstand human life. Wealth can absolutely be a bad thing.

People don't need money. They need purpose. America is the richest country in the world and it's devolving into barbarism because it has a pathological culture that places profit over purpose.

[Anonymous]

It'll return once the democrats have finished destroying the USA

[DWornock]

The politicians may not have any choice when the value of the dollar is equal to the value of the German Mark in1923. And, that may happen 100 years after1923 or soon thereafter..

[Opinion Owner]

Indeed the petrodollar status is at risk especially since the Saudis started taking the Chinese Yuen

[ChillaxingLove]

It’s best for an individual just to buy gold

[KrakenAttackin]

It's way to late for that.

[SensualMan]

nope