Money is a very important part of the American way of life. Many people feel our worth is measured not by our deeds but by the number of zeros in our bank account. In today’s rough economy, some Americans are learning that they are not “worth” quite what they thought they were. They are also taking the time to become more aware and educated on what affects the economic stability of our nation and what affects the worth of a dollar.
The gold standard is something that affects the worth of the U.S. Dollar. Gold standard was a commitment by different participating countries to freeze the prices of their homeland currencies according to a determined amount of gold. The first to use the gold standard were the British in 1717, which further influenced other countries to participate. This standard was enjoyed by many because the currency was traded at a fixed rate. The Gold Standard Act was adopted by the United States in 1900. The Gold Standard Act was signed by President William McKinley and established gold as the only standard for redeeming money. This stopped bimetallism in the United States. This act remained in place until 1971 when President Richard Nixon announced that gold would no longer be redeemed for money in the United States. While some efforts have been made over time to reinstate the gold standard, they have failed due to the instability of the value of the medium.
While there have been efforts to bring back the gold standard which have been unsuccessful, there are those who would like to see it return. All countries desire to have a stable economy, and the gold standard was more desireable than those that were previously available. Some argue that the return of the gold standard would reduce inflation. This is because currently the government controls the supply of money flowing through our economy. When more money is printed inflation increases, it is believed that the gold standard would provide a... [continues]
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