From my understanding, remove from the gold standard just allows government to arbitrarily make up the value of the now fiat currency, which is why we now struggle with inflation and soaring debt.
It seems obvious that you’d want your dollar to theoretically be fixed to another medium with a readily appraisable value simply to maintain stability and prevent government corruption through manipulation of the monetary supply.
But then again, I’m no economist.
In: Economics
Because being able to control the money supply is very important.
When an economic crash happens, say, due to a global pandemic, demand for goods and services absolutely craters and will lead to high unemployment and a lasting recession. By increasing the money supply we can stimulate demand to make that unemployment and lower spending last a few months rather than a few years.
When a supply shock occurs, say, do to a global oil shortage, and prices start rising it really helps to be able to shrink the money supply.
Price stability by way of a gold standard is not worth the complete inability to practice monetary policy.
Furthermore, gold doesn’t have a “readily appraisable value.” Governments just said, “$1 is worth x ounces of gold” arbitrarily.
Having a gold standard or a fiat currency also has next to nothing to do with the government’s debt, at least in countries with an independent central bank. The government’s taxing and spending powers and its use of those powers are what determine the debt.
Finally, it is not “government corruption” for an arm of the government to do the job laid out for it in a law passed by Congress.
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