How can money have value if we don’t use the gold standard anymore?

Question

Before the gold standard was dropped, it was relatively easy to understand where money got its value.

Money represented a certain proportion of gold in a country’s National Reserve. The money could be cashed in for gold, a very physical and tangible item. That all makes sense.

But we don’t use that anymore. So isn’t the money just paper? I don’t see how this system makes sense anymore.

In: 0

Answer 1

Now you’ve figured it out, or USD had no real meaning, it’s value is based on the fact that as a society, we agree it had value, but on paper there is no tangible thing to back up paper money’s worth