Reason For Selection
As a child, I never understood why gold was so expensive. It was nice, shiny and heavy but I was never a fan. I rather buy silver or platinum jewelry. After growing up and hearing the term gold standard, I interpreted it as being the best. Now that Iâ€™ve read the textbook, it makes me wonder why anyone would want to bring it back. Yes, the gold standard was great back in history but now it is a whole different economy.
Key Term Explanation
Gold was a source of money from the beginning of time. When governments started printing money, it was convertible to a predetermined amount of gold. The gold standard regulated the quantity and ...view middle of the document...
Limiting the amount of money the government can print when times are bad and people arenâ€™t spending can result in higher unemployment (Tepper, 2015).
At one point in history, the gold standard was a good idea. But like every good thing, the end will come and that is what happened with the gold standard. It was no longer in use as of 1971 and should stay that way. The Republican Party does not need to investigate on ways to bring the gold standard back because it is no longer ideal. There is relatively little of it while there are more people and goods all the time. If prices continue to decline, people are less likely to spend their money (Rauchway, 2015). The Republican Party continues to exaggerate its benefits and underappreciate its failures. They believe the country enjoyed booming economic growth and lower inflation that we have had with the Fed now (Ip, 2015). In 2012, the University of Chicagoâ€™s business school asked its panel of 51 experts if a return to the gold standard would improve the economic situation for the average American. Not a single on thought so, thus backing up the idea the gold standard should not return...