Gold Standard Research Paper

Alexis Villarreal
Prof. Matlock
English 1302
12 August 2015

Gold Standard Gold has been admired and criticized throughout the centuries. There has been many unimaginable commodities like stones, pottery, tobacco, and after many errors of the wrong one, human kind embraced Gold. People did not randomly adopt Gold; it was rare, dense, shiny and easily identifiable. Even nowadays all people go crazy for a piece of gold, and would even kill. The gold standard would open up opportunities for the United States which is why it’s back into debate. Transitioning to the gold standard would stabilize the monetary system, limit the federal reserve from printing irrational amounts of money, and clear issues of inflation.

In the earlier years, the
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What people do not understand is that if gold is used as a currency, prices will remain stable over time. Suede explains this: “The purchasing power of gold does not fluctuate wildly because the supply cannot fluctuate wildly” (Suede 1). With fiat money, we can see that the money supply fluctuates greatly and prices are never stable because the Federal Reserve keeps printing out more money causing inflation and raising interest rates as well. With the gold standard, the value and power of gold blows the value of the dollar out of the water. Over time, we can see improvements in the economy and our debt may even decrease along the way. The main reason the government does not want this type of monetary system, is because it will limit them in how much they can spend because then they cannot rely on printing more money for them to spend. People may also think that with gold in the system, people will hoard their gold and the amount of money that is available will go down meaning that the prices will go down, as well causing deflation. However, reduction in prices are very good for the consumers. Suede says “I don’t know about you, but when prices fall, I tend to buy more goods, not less. It doesn’t take a rocket scientist to understand that falling prices are always beneficial for consumers” (Suede 1). If people buy more goods that means the deflation that is happening will dissipate after the …show more content…
Since the dollar and the gold isn’t tied anymore, it wouldn’t really affect transactions but it will compete with the dollar because it’s valued more. This concept would turn out to be very beneficial to the country and maybe even other countries if they see as a good thing as well. Garrett explains, “over time it would make precious metal coins more stable in relation to anything we buy” (Garrett 2). The value of metals such as gold would most likely go up, but would stabilize its value within the market of the goods and services. This type of gold standard would help other countries see that the value of gold will be very beneficial for our country as well as theirs. The Gold standard will make a big and healthy difference if all countries take it back, it will be easier to import and export commodities. Besides gold isn’t tied with the dollar anymore so if the dollar fails the gold will still be intact at the same cost. Utah has made a great investment for themselves because in the long run, there is a big possibility that the current currency, the dollar will fail and when so te state will have enough gold to keep

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