Excerpt from the American Thinker:
Yesterday, Congressman Alexander Mooney (R-W.Va.) introduced a bill to once again make the U.S. dollar convertible to a fixed weight of gold. The legislation, H.R. 5404, was written in the spirit of Jack Kemp’s Gold Standard Act, and, as Rep. Mooney noted, it marks the first attempt since 1984 to restore a gold backing to the U.S. dollar. While the passage of this legislation is a long shot in our current political climate (which, unfortunately, overlooks the importance of monetary policy in facilitating economic growth), this is a big deal. Rep. Mooney’s gold standard act could reignite a much needed conversation about the importance of having a stable dollar to create soaring economic growth.
Since economic growth has slowed since Nixon took us off the gold standard, it is prudent to examine whether our monetary policies bear at least partial responsibility for our relative stagnation. Has the past decade of easy money really facilitated the best possible outcome for U.S. economic growth? As Rep. Mooney wrote, the current “federal reserve note” has resulted in the U.S. seesawing “between too much and too little money in the economy. The Fed has the impossible task of guessing the market’s demand in real time. Its performance worsened in the 2000s because the Fed began to grade itself by how its money creation boosted the financial markets. Today many people are so disillusioned with the dollar’s prospects that they have embraced cryptocurrencies like bitcoin.” Rep. Mooney hit the nail right on the head.
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