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> The Gilded Age Which saw 40% increase in median real wages over 30 years. [1] > It should also be noted that the gold standard did not bring any kind of pri

> The Gilded Age Which saw 40% increase in median real wages over 30 years. [1] > It should also be noted that the gold standard did not bring any kind of price stability: Prices are *475%* what they were 50 years ago, far exceeding price changes under the gold standard. > Further, sticking to the gold standard made the Great Depression worse as it reduced flexibility and options of central banks had, and made deflation worse: It did make deflation worse. Deflation = Bad is an assumed tenant of modern economics. > The sooner countries left the gold standard the sooner they started recovering from the Great Depression: By a certain definition. The US did not really leave the gold standard until 1971 (which coincidentally, is when inflation really started to take off). [1] https://en.wikipedia.org/wiki/Gilded_Age https://en.wikipedia.org/wiki/Gilded_Age

throw0101d 4mo ago
> Which saw 40% increase in median real wages over 30 years. [1] Which occurred in spite of the Gold Standard, rather than because of it: * https://econbrowser.com/archives/2012/09/the_gold_standa_1 https://econbrowser.com/archives/2012/09/the_gold_standa_1 There were major periods of instability during that period. Growth that is unlikely to be repeated: * https://en.wikipedia.org/wiki/The_Rise_and_Fall_of_American_Growth https://en.wikipedia.org/wiki/The_Rise_and_Fall_of_American_... > Prices are 475%* what they were 50 years ago, far exceeding price changes under the gold standard.* And wages would have been worse under a Gold Standard: * https://econbrowser.com/archives/2012/09/return_to_the_g https://econbrowser.com/archives/2012/09/return_to_the_g > It did make deflation worse. Deflation = Bad is an assumed tenant of modern economics. It is not an assumed tenant, it is (or was for many millions) a lived experience. Let us say a farmer had taken out a mortgage in 1928, and let us say his mortgage payment was US$20 (equivalent of 1 oz. of gold). In May 1929 he would have had to have sold 114 pounds of cotton to earn $20 (or 18 bushels of wheat, 23 of corn, 44 of oats). By May 1932 he would have had to sold 369 pounds of cotton (or 38 bushels of wheat, …): * https://www.sciencedirect.com/science/article/abs/pii/0304393287900456 https://www.sciencedirect.com/science/article/abs/pii/030439... * https://econbrowser.com/archives/2012/02/why_not_abolish https://econbrowser.com/archives/2012/02/why_not_abolish And it would have been the same for selling any good or service: to pay whatever debts you had (mortgage, car/business/student loans) you would have to work more to earn the same amount of money. Is that good?
- paulddraper 4mo ago
  > And it would have been the same for selling any good or service: to pay whatever debts you had (mortgage, car/business/student loans) you would have to work more to earn the same amount of money. Is that good? That’s not apples to apples. Deflation (or at least reduced inflation) means reduced interest rates.
  - throw0101d 4mo ago
    > Deflation (or at least reduced inflation) means reduced interest rates. If it was "just" a slow down, maybe interest rates were lower, but during times of uncertainly lending is risky and so higher return is asked for that risk. The historical records shows that interest rates spiked during major economic events (of which there were more off, more often, and tended to last longer): * https://econbrowser.com/archives/2012/02/why_not_abolish https://econbrowser.com/archives/2012/02/why_not_abolish * https://econbrowser.com/archives/2012/09/the_gold_standa_1 https://econbrowser.com/archives/2012/09/the_gold_standa_1

throw0101d 4mo ago

> Which saw 40% increase in median real wages over 30 years. [1] Which occurred in spite of the Gold Standard, rather than because of it: * https://econbrowser.com/archives/2012/09/the_gold_standa_1 https://econbrowser.com/archives/2012/09/the_gold_standa_1 There were major periods of instability during that period. Growth that is unlikely to be repeated: * https://en.wikipedia.org/wiki/The_Rise_and_Fall_of_American_Growth https://en.wikipedia.org/wiki/The_Rise_and_Fall_of_American_... > Prices are 475%* what they were 50 years ago, far exceeding price changes under the gold standard.* And wages would have been worse under a Gold Standard: * https://econbrowser.com/archives/2012/09/return_to_the_g https://econbrowser.com/archives/2012/09/return_to_the_g > It did make deflation worse. Deflation = Bad is an assumed tenant of modern economics. It is not an assumed tenant, it is (or was for many millions) a lived experience. Let us say a farmer had taken out a mortgage in 1928, and let us say his mortgage payment was US$20 (equivalent of 1 oz. of gold). In May 1929 he would have had to have sold 114 pounds of cotton to earn $20 (or 18 bushels of wheat, 23 of corn, 44 of oats). By May 1932 he would have had to sold 369 pounds of cotton (or 38 bushels of wheat, …): * https://www.sciencedirect.com/science/article/abs/pii/0304393287900456 https://www.sciencedirect.com/science/article/abs/pii/030439... * https://econbrowser.com/archives/2012/02/why_not_abolish https://econbrowser.com/archives/2012/02/why_not_abolish And it would have been the same for selling any good or service: to pay whatever debts you had (mortgage, car/business/student loans) you would have to work more to earn the same amount of money. Is that good?

paulddraper 4mo ago
> And it would have been the same for selling any good or service: to pay whatever debts you had (mortgage, car/business/student loans) you would have to work more to earn the same amount of money. Is that good? That’s not apples to apples. Deflation (or at least reduced inflation) means reduced interest rates.
- throw0101d 4mo ago
  > Deflation (or at least reduced inflation) means reduced interest rates. If it was "just" a slow down, maybe interest rates were lower, but during times of uncertainly lending is risky and so higher return is asked for that risk. The historical records shows that interest rates spiked during major economic events (of which there were more off, more often, and tended to last longer): * https://econbrowser.com/archives/2012/02/why_not_abolish https://econbrowser.com/archives/2012/02/why_not_abolish * https://econbrowser.com/archives/2012/09/the_gold_standa_1 https://econbrowser.com/archives/2012/09/the_gold_standa_1