Some Context on the Gold Standard

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During Monday night’s GOP presidential primary debate on NBC, Rep. Ron Paul (R-Tex.), a prominent advocate of pegging the value of the US dollar to the price of gold, praised Newt Gingrich, the former speaker of the House, for promising to appoint a federal gold commission to “look at the whole concept of how do we get back to hard money.” Since there was little actual discussion of the gold standard as policy (President Richard Nixon took the US off gold in August 1971), it’s worth examining what top economists think about it. In short, they don’t think it’s a great idea. The University of Chicago’s business school recently asked several dozen top economists whether they agreed with the following statement:

If the US replaced its discretionary monetary policy regime with a gold standard, defining a “dollar” as a specific number of ounces of gold, the price-stability and employment outcomes would be better for the average American.

Every single one of the economists surveyed disagreed with the statement; i.e., they unanimously embraced the anti-gold standard view, differing only on the degree to which they disagreed with it. 

Gold standard advocates will point out that many top economists missed things like the housing bubble and the financial crisis, and that establishment support for a view doesn’t necessarily mean it’s correct. That’s true, but context is important, too.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

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Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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