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How do we even go back to a gold standard correctly? I've heard it said that it would potentially ruin the economy, so how would one even do it? Do you just sta

How do we even go back to a gold standard correctly? I've heard it said that it would potentially ruin the economy, so how would one even do it? Do you just start printing bigger denomination bills as silver / gold certificates? I still have a "Silver Certificate" $5 bill somewhere...

rbanffy 2y ago
Those who don't like something always say it'll ruin the economy. They probably did that with the 5-day week, the 40-hour week, vacations, parental leave, overtime pay, etc. It never quite happens.
- aredox 2y ago
  The gold standard era was full of crises
  - throw0101c 2y ago
    > The gold standard era was full of crises E.g., * http://archive.is/https://www.theatlantic.com/business/archive/2012/08/why-the-gold-standard-is-the-worlds-worst-economic-idea-in-2-charts/261552/ http://archive.is/https://www.theatlantic.com/business/archi...
- Aunche 2y ago
  America is still on the gold standard in that you can theoretically exchange an American Gold Eagle worth $2800 for $50 at a bank. What the end of the Bretton Woods is really means is that the government is unwilling to sell you an oz of gold for $50 anymore. A law that mandates the government to shoot itself in the foot is a bad law. It's not countries can't otherwise be fiscally conservative. Germany's debt to GDP ratio is about the same as it was 20 years ago.
  - rbanffy 2y ago
    > What the end of the Bretton Woods is really means is that the government is unwilling to sell you an oz of gold for $50 anymore Was there a law forcing the government to make gold coins? What it meant is that I would be able to give $2800 to the Fed and get the equivalent amount of gold at a valuation given by the number of dollars in circulation, divided by how much gold the Fed held. > Germany's debt to GDP ratio is about the same as it was 20 years ago. They also don't spend massively on their military.
wesapien 2y ago
No, but there's a good reason they did this. The US would have run out of gold if they kept the gold standard. Due to the trade deficit, all the exporters would eventually drain the gold supply since gold is seen as better and the thing to be hoarded.
Zak 2y ago
The mechanics of it are pretty simple: Congress passes a law setting an exchange rate or causing the treasury to do so, then the treasury starts exchanging dollars for gold at that rate. I'll leave whether that's a good idea to people who actually study economics seriously; most of them seem to think it's not.

rbanffy 2y ago

Those who don't like something always say it'll ruin the economy. They probably did that with the 5-day week, the 40-hour week, vacations, parental leave, overtime pay, etc. It never quite happens.

aredox 2y ago
The gold standard era was full of crises
- throw0101c 2y ago
  > The gold standard era was full of crises E.g., * http://archive.is/https://www.theatlantic.com/business/archive/2012/08/why-the-gold-standard-is-the-worlds-worst-economic-idea-in-2-charts/261552/ http://archive.is/https://www.theatlantic.com/business/archi...
Aunche 2y ago
America is still on the gold standard in that you can theoretically exchange an American Gold Eagle worth $2800 for $50 at a bank. What the end of the Bretton Woods is really means is that the government is unwilling to sell you an oz of gold for $50 anymore. A law that mandates the government to shoot itself in the foot is a bad law. It's not countries can't otherwise be fiscally conservative. Germany's debt to GDP ratio is about the same as it was 20 years ago.
- rbanffy 2y ago
  > What the end of the Bretton Woods is really means is that the government is unwilling to sell you an oz of gold for $50 anymore Was there a law forcing the government to make gold coins? What it meant is that I would be able to give $2800 to the Fed and get the equivalent amount of gold at a valuation given by the number of dollars in circulation, divided by how much gold the Fed held. > Germany's debt to GDP ratio is about the same as it was 20 years ago. They also don't spend massively on their military.

wesapien 2y ago

No, but there's a good reason they did this. The US would have run out of gold if they kept the gold standard. Due to the trade deficit, all the exporters would eventually drain the gold supply since gold is seen as better and the thing to be hoarded.

Zak 2y ago

The mechanics of it are pretty simple: Congress passes a law setting an exchange rate or causing the treasury to do so, then the treasury starts exchanging dollars for gold at that rate. I'll leave whether that's a good idea to people who actually study economics seriously; most of them seem to think it's not.