Help U.S. Currency!!!?

Question

Why wouldn't the United States be better off if they were to return its currrency to the gold standard?

Answer 1

the last answer is so completely wrong that I'm not sure where to start to criticize it... the US (and the rest of the world for that matter) is better off without the gold standard for a few reasons and none of them have to do with the demand for gold.

First, when you set the US dollar at a fixed rate, you are basically requiring the US government to constantly spend a great deal of money to enforce this 'peg' in world markets. This can get very costly and the money is better spent elsewhere. Second, the natural fluctuations of a currency's price are actually healthy for the market and keep a country in economic balance. Third, the market is always the best at setting the price of an asset, almost never the government. Fourth, the gold standard requires keeping the price of gold artificially low, when the standard was lifted this created a major imbalance in the markets and the price of gold went through a period of intense volatility before settling down.

The gold will not be re-introduced anywhere in the near future, and noone is planning on it happening.

Answer 2

Believe it or not, gold is not worth as much today as it was back in 1980. And that's after the dollar has lost quite a bit of value due to inflation.

For better or worse, all developed economies have removed the hard asset backing of their currencies. Money today is valued by the strength of that nations economy, it's financial condition, it's fiscal discipline, and the quality of it's governance.

Answer 3

no because now, fewer and fewer people are motivated by gold. its no longer as sought after and valuable as hundreds of years ago. dollars are the best option , as what Americans want and whats in highest demad changes so frequently