A lot of problems started after the U.S. left the gold standard
After the U.S. left the gold standard in the 1970s, Americans have been worrying about the economy ever since. It’s now almost always on the list of things Americans are most concerned about.
That didn’t use to be the case. Americans didn’t always put the economy as their #1 worry. No really, I’m not kidding.
Someone might say it’s just coincidental that the economy went off the rails once we left the gold standard. Yes, that MIGHT be the case. But where does the evidence point to? What’s the most likely explanation? Even if leaving the gold standard didn’t cause all our problems, it stretches credulity to think it didn’t play a part in our current problems.
After all, merely printing money isn’t going to solve our problems. If that were the case, nobody would have to go to work! Even worse, printing money causes issues besides mere hyperinflation. Hyperinflation is just the worst-case scenario, not the only scenario.
Money/currency isn’t the only thing that matters for an economy. However, getting money wrong leads to disastrous consequences. For example, under our current system, even 2–3% inflation per year adds up very quickly. Rich people don’t care about everyday prices going up. And the middle class has to do two things:
- Consume more on silly things because they are losing purchasing power every year
- Invest more because saving is not allowed unless you want to lose purchasing power
This is immoral. You are forcing people to “gamble” their retirement. Investing is not the same thing as saving. Investing involves considerable risk, and the average person is not an expert on the subject.
With regards to consumption, that is forced as well. You have to work 40+ years whether you like it or not. Never mind the fact that an economy based merely on consumption doesn’t make any sense whatsoever. It’s also a recent phenomenon.
For decades, people have felt like they can’t ahead. Could it be because their money is losing purchasing power every year? A serious answer can’t deny that inflation is a factor.
Again, rich people don’t care. In fact, they like it because money flowing into assets…