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And we saw how a blind obedience to those principles prolonged the Great Depression[1]. FDR's economic reforms, including getting the world economy off the Gold
by omegaworks 6y ago
And we saw how a blind obedience to those principles prolonged the Great Depression[1]. FDR's economic reforms, including getting the world economy off the Gold Standard, propelled the recovery and allowed the US to meet the needs of the war effort.
1. https://www.history.com/news/how-did-the-gold-standard-contribute-to-the-great-depression#:~:text=The%20government%20raised%20the%20price,depths%20of%20the%20Great%20Depression https://www.history.com/news/how-did-the-gold-standard-contr....
- wongarsu 6y agoIt certainly has disadvantages. Great Britain lost their US colonies in large part because they needed to raise taxes to pay for their debts. But the power to just print money has to be used responsibly, there's no shortage of examples of countries damaging their economy by triggering hyperinflation. And if you want a global currency there is no institution that would be trusted with that kind of responsibilty by enough countries.
- omegaworks 6y agoNot sure how your first point is relevant. The Great Depression was in the 1930s, the US colonies declared their independence in 1776. Of course the power to print money comes with responsibility. That isn't up for debate. I think you will find hyperinflation more tightly correlated with economic sanctions that cut off countries from the global trade market. A currency is worthless if you can't buy goods with it. It's a phenomena that grew out of western imperialists that levied massive debts on their former colonies in exchange for independence. Colonies that reneged on those debts were sanctioned. Physically and violently prevented from engaging in trade, ships pilfered etc. Many new governments responded by printing the money those debts were issued in - if they could.