Tes cruz net worth12/10/2023 By moving off the gold standard, America gained the ability to manage inflation much more acutely. Such consensus is indeed unusual, but it’s not hard to see where it comes from here. “Economics is often a contentious subject, but economists agree about the gold standard - it is a barbarous relic that belongs in the dustbin of history,” The Atlantic’s Matt O’Brien put it in 2012. The reason gold standard proponents favor the coded language of “sound money” is partly that everyone agrees the gold standard was terrible. The gold standard forced governments around the world to restrict monetary policy just as markets crashed in the late 1920s, which helped turn a crash into the Great Depression. The supposed benefit of this is that your money’s worth is more real because it is pegged to a shiny, rare metal.īut when you let the market for gold determine the value of every piece of paper money in every person’s pocket on any given day, you leave your entire economy exposed to catastrophe. The idea of “sound money,” as the libertarian crowd that worships the gold standard prefers to call it, is that it takes away the Fed’s ability to manage the value of a dollar. Returning to a “gold standard,” as the policy was known, would send the broader economy into the kind of jittery and deadly tremors usually seen only in lab mice who’ve been fed cocaine. “And I think the Fed should get out of the business of trying to juice our economy and simply be focused on sound money and monetary stability, ideally tied to gold.”Īmerican money hasn’t been based on the price of gold since the early months of Franklin Roosevelt’s presidency. “We need sound money,” Cruz said when asked about Federal Reserve policy by CNBC’s Rick Santelli. Ted Cruz (R-TX) called for returning to a policy idea that died in 1933 and has gone unmourned ever since. At Wednesday night’s GOP presidential debate, Sen.
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