The battle over the gold standard is an interesting one. In today’s article we’ll step back and review why politicians hate it. And in doing so remind ourselves why everyday citizens desire the gold standard over money printing.
Replacing Gold With Printing Paper
As soon as they started using paper it was love at first print. It was easy for governments to print new money. It was amazing, even if they had not collected any gold to redeem the paper banknotes.
Throughout history, this has been a popular way for governments to generate new money. Printing was easier than other options. Printing money meant they didn’t need restraint. Although good for politicians. Government printing is bad for the people. As they print our currency loses its value. The people pay the price, called inflation.
The People Vs. The Politicians
This explains why people who have begun to see these matters in a clear light have turned anew to the idea of Metallic money. Many people are now asking that gold come out of the depositories and vaults. Many people now are understanding that physical gold and physical silver are the only real sound money with intrinsic value.
The desire for the return to the gold standard is understandable. We hope to see it realized some day. However, the argument in favor of is not always stated in a valid way.
The distinctive function of gold as money does not consist in its intrinsic value or in the constancy of that value, which fluctuates even in the absence of government intervention.
The Desired Standard
The excellence of metallic money in free circulation consists in this simple fact. The Gold standard renders impossible the abuse of the power of the government. A government on the Gold standard can not dispose of the possessions of its citizens by means of its monetary policy. The standard that you seek will serve as the solid foundation of economic liberty.
But Governments and politicians alike love the ability to print money. Yes, it destroys the value of our currency. Yes, it destroys purchasing power and of course the private wealth and liberty of citizens. This is why we as citizens want the gold standard and why politicians hate the gold standard.