3 ms·
IMO it really became bad after US left the gold standard in 1971 and the petrodollar was invented.
by yuhong 8y ago
IMO it really became bad after US left the gold standard in 1971 and the petrodollar was invented.
- Latteland 8y agothere seem to be serious problems with the gold standard because of what attracts people, that it is rigid and unchanging. If the us economy grows a lot, how do we get more gold? what if a ship with a lot of our gold on it goes down in the middle of the ocean? What problems would it improve? if we have a recession, how would the govt help keep things going (ie print dollars)? Most people wouldn't have been better off if most large banks had failed then.
- yuhong 8y agoThe point would be to not print more and more dollars to "boost" the economy and run more trade deficits, especially using debt. With the gold standard trade deficits would result in less money being printed.