re: Was the gold standard a good or bad economic practice?

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Was the gold standard a good or bad economic practice?

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The problem was the gold supply was fairly fixed. Economic output in productive economies outstripped specie reserves. More people produced more stuff, but with slower growth of the gold supply, prices and salaries had to decline.

In terms of trade, specie-flow mechanisms led to restrictive tariffs. Specie outflow is the outflow of gold/silver in a country experiencing trade deficits. Money supply (tied to specie) in the affected country contracted accordingly, worsening deflation.

Workers tended to object to repeated salary cuts (even though they were often proportional to declining cost of goods)

Fiat currencies typically have a viable lifespan of 30 years until inflation and instability destroy it. We’re on year 52 of being a fiat currency, how has it gone since 2001?

It obviously more complex, but the government creates inflation, as they are the only ones that can create money. More government spending and printing of money without a viable control in place isn’t a great thing.

Others have mentioned trade deficits and other factors that weight on a commodity backed currency. The hard barrier being removed for government to simply print money to cover whatever they want was a wet dream for politicians. Consequences be damned.

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Our economy as well as the global economy would be a fraction of what it is today if we remained on the gold standard.

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How do you figure?

Having the dollar backed by something, gold, is far vastly superior to the fiat monetary system where you can print out more and more money to further devalue the current money supply.

The creation of the Fed has led to the collapse of the US, but those who created the Fed, are benefiting from it as intended.

Well I came from nothing. Because I’m fortunate enough to live in this country I’ve been able to acquire something.

So thinking linearly; if taking the dollar off the gold standard allowed for more robust growth and a broader quality standard of living for Americans.. then I’ve gotta say the pros outweighed the cons.

Now if we could just get some true fiscal conservatism going in DC…

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What a great scene. Really spot on too

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Very underrated movie. Well acted too.

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Anyone selling 'Its 100% evil' or 'its the best thing ever', is shitting out of their mouths.

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The FED that is not part of our govt, isn't evil? The fed is evil and nothing but corrupt crooks. You think the FED is here to help the working people, the 99% (the poors)?

What good do they do?

All countries in history that were on the gold standard, failed.

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Fiat currencies typically have a viable lifespan of 30 years until inflation and instability destroy it.

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A meme-myth.

The guy who spread it looked at 600 or so currencies for his average, yes…..but arrived at that list by ignoring any of the 176 currencies that still existed. Also, the reason for the drop of currency on his list was mostly not for economic reasons or something you can call a “failure” of the coin.

If a country is invaded and taken over, with its coin and government replaced by the invaders….did the currency “fail?”

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A meme-myth.

The guy who spread it looked at 600 or so currencies for his average, yes…..but arrived at that list by ignoring any of the 176 currencies that still existed. Also, the reason for the drop of currency on his list was mostly not for economic reasons or something you can call a “failure” of the coin.

If a country is invaded and taken over, with its coin and government replaced by the invaders….did the currency “fail?”

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True; it's a common meme of the Bitcoin bros. Even with that the stats break down these lines:

20% failed through hyperinflation, 21% were replaced as a result of war, 12% from countries gaining independence, 24% were monetarily reformed, and 23% are still in circulation.

The biggest problem is that the 23% in circulation have lost value even and the holders continually lose buying power year over year and have absorbed the quiet tax of inflation. I can see the issues calling them failed, but you'd be hard pressed to call them a success.