BILL: Should We Go Back to a Gold Standard? - H.R. 2435

The Bill

H.R.2435 — The Gold Standard Restoration Act

Bill Details

• Sponsored by Rep. Alexander X. Mooney (R-W.Va) on March 30, 2023
• Co-sponsored by Reps. Andy Biggs (R-Ariz.), Paul Gosar (R-Ariz.), and Anna Luna (R-Fla.)
• Committees: House - Financial Services
• House: Not yet voted
• Senate: Not yet voted
• President: Not yet signed

Bill Overview

• The "Gold Standard Restoration Act" would tie the dollar to a certain amount of gold.
• The bill claims the dollar has lost its value over time due to inflation caused by the Federal Reserve.
• Argues that the gold standard would put control of the money supply with the market instead of the government and discourage excessive spending.
• Requires the government to disclose its gold holdings and transactions.

What's in the Bill?

Fixes the dollar to a fixed weight of gold

• The "Gold Standard Restoration Act" seeks to define the dollar as a fixed weight of gold and make Federal Reserve notes redeemable for - and exchangeable for - gold at a fixed price.
• This price would be determined by the Secretary of the Treasury based on the market price of gold. 
• Within 24 months of its enactment, the Treasury would be required to define the dollar in terms of a fixed weight of gold and make Federal Reserve notes redeemable for gold at this rate. 

Will combat inflation and excessive deficit spending

• Claims that the purchasing power of the Federal Reserve Note has declined significantly since the passage of the Federal Reserve Act in 1913 and that the Fed's policy of long-term inflation has made American manufacturing uncompetitive.
• Argues that the gold standard would discourage excessive deficit spending, encourage the balancing of Federal budgets, and put control of the money supply with the market instead of the Federal Reserve.

Would make gold holdings publicly available

• The Secretary of Treasury and Federal Reserve would be required to make publicly available their holdings on gold, purchases, sales, swaps, leases, redemptions, and transfers of U.S. gold since 1971.

What Supporters are Saying

• Sponsor Alex X. Mooney said:

“The gold standard would protect against Washington’s irresponsible spending habits and the creation of money out of thin air. Prices would be shaped by economics rather than the instincts of bureaucrats. No longer would our economy be at the mercy of the Federal Reserve and reckless Washington spenders.”

• Lawrence W. Reed, president emeritus of the Foundation for Economic Education, said:

"Government cannot continue to spend and print on a massive scale without producing existential threats to the currency and our economy. The gold standard never failed America, bad ideas and bad politicians did. If we do nothing, disaster awaits us just as it drowned earlier civilizations that spent and inflated their way to ruin."

Tell your reps to take action on The Gold Standard Restoration Act

— Josh Herman & Emma Kansiz

(Photo Credit: Canva)