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Iowa | I think what you’re talking about is never seeing an increase in total dollars (money supply) in the system - that was never the case - the gold supply has always increased - same as other pegs through history - as an economy grows and developed the “standard” retains its value so the incentive to obtain more of it is high. Either way your point is valid in that a restriction in money supply would put the brakes on a lot of things - BUT it also shows how much our economy has changed in 100 years too.
It’s a big subject to wrap your head around- especially when everyone alive has only been a part of the current system. Of course there’s a lot of theories as to how things would go - and I’m not necessarily an advocate of ending the fed altogether—- But the path we’re on since 2000 isn’t sustainable either - but I’m not sure we have the willpower or intelligence in DC to figure it out - a lot of the problems would be significantly better if DC would just get to a balanced budget—- or even a budget at all. Milton Friedman said inflation stops the minute government stops spending - that’s why if you look at purchasing power it has tanked hard since 2000. | |
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New fed chair policies