Economic Prosperity Requires Real Money
In 1979, New York Congressman Jack Kemp was preparing to run for president in the 1980 election cycle, and wrote a book outlining his ideas for America’s future titled An American Renaissance. As someone who was still young enough to be persuaded to become more liberal or conservative, and one who had come under some of the influence of those who preached the message that Democrats and liberals were more for the people than conservatives and Republicans, I at first read Kemp’s book (as well as Newt Gingrich’s first book Window of Opportunity) to see what the other side had to say. I had also lived under the liberal Democrat governorship of Michael Dukakis in Massachusetts and by 1988 I was strongly supporting George H.W. Bush in the general election for president. As I came to understand economics, I also understood a strong economy requires real money that has real value.
Kemp noted the important role the dollar plays as the “world’s central reserve and trading currency,” and stated “All that is required is a firm commitment to tie the dollar’s value to something more constant than political whim.”
Kemp suggested Gold, which has been used in the past, because it is in limited supply, has accepted exchange value, compactness, and imperishability. He also noted only a small Gold reserve would be needed to tie the dollar’s value to Gold.
The Gold standard that would likely be put in place could look much like the system our country used between 1870 to 1914 that worked quite well. Of course there would some changes to update it for our modern times, but it would function much like it did then and quite effectively for our current economy. Even in our current age of technology, that which works quite well is in no need of being fixed.
Steve Forbes has called for a return to the Gold standard, which is specified in our Constitution, which is the most effective way we’ve maintained the value of currently for thousands of years of history. It is the most effective way to maintain the value of our dollar. Between 1792 and 1913, the years the U.S. tied the value of the dollar to Gold, there was almost no inflation. The value of the dollar was remarkably stable. Since 1971, the dollar has lost about 85 percent of its value.
The Gold standard isn’t for the elites, it’s for the people. The elites benefit from the Federal Reserve system, while the economic prosperity that would result from re-establishing the Gold standard would benefit all Americans. The American people voted for change in the election last November, and the Gold standard would be a great change that would truly help President Trump and Congress make America great again.
Even Alan Greenspan, the former chairman of the Federal Reserve who is predicting hyperinflation coming soon, advocates returning to the Gold standard. If we take that course, he points out, we will avoid the coming hyperinflation that he sees in our future.
There is a very good chance, perhaps, that President Donald Trump would re-establish the Gold standard. We can certainly hope he does, because a sound economy and strong prosperity require we have real money. And the key to that is going back to the Gold standard again.
There is no doubt, we need to return to the Gold standard to establish real money as the basis our future economy. This is exactly what we need to truly make our economy, and America, great again.