Benefits Of The Gold Standard Essay

802 Words Jul 28th, 2016 4 Pages
There are always pros and cons to every system no matter which direction you may look at it. Both the idea of having the gold standard and not having our money backed by anything are two very shaky and solid ideas. The current system has no backing of any kind so prices are slanted more toward the government’s whim. This can make the economy more flexible in a hard pinch by just printing more money. The gold standard gives our money more solidarity because there is only so much gold in the world this limits the spending on pointless wars and keeps thing with in their means. The gold standard is the better of the two because it encourages healthy spending and saving habits. Or maybe even anti-matter?

Have no backing to the United States Dollar gives our government a finer amount of control and keep its value a little more steady. This fine amount of control could just as easily back fire. Pieces can decline or increase depending on how many trillions of the dollars the government can print or with drawn into the economy or adjust interest rates on barrowing. These adjustments have caused resections like the housing bubble and financial crisis of 2008-2009 by keeping interest rates way too low. The response to this problem has been to print more money, then bail out the companies who are facing crisis. The last twelve instances this situation has only applied a Band-Aid to the situation with fiat money. By doing this these entities just think they will be bailed out the next…

Related Documents