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

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

  • 89.9k
    LeslieG
    Voted Oppose
    04/19/2023

    H.R. 2435: Gold Standard Restoration Act is a partisan retread from previous Congresses (1984, 2021) sponsored during the 118th Congress by 4 Republican members (Mooney R-WV, Biggs R-AZ, Gosar R-AZ, Luna R-FL) ironically trying to reverse policy from previous Republican Administrations (Nixon, Reagan) showing the schism in the Republican Party of old versus new. 

    The Nixon Administration ended the Gold Standard in the US established post-WWII among Allies that used gold as a reserve for USD and made the USD the reserve for all other Allied currencies, and no other country currently uses the gold standard.

    Paul Krugman, a well-known economist stated (2014), that going back to the gold standard is a frequently occurring topic among right-wing circles. Ironically, it’s coming up again in the 118th Congressional House Freedom Caucus, but there are several reasons why it was discontinued in 1986 by a Republican Administration and never reinstituted:

    (1)  It won’t prevent inflation caused by scarcity of product just because the price is in gold not USD.

    (2) It won’t peg interest rates unless all countries use the gold standard which they don’t. Much of increased prices on imports is interest rate fluctuations, and even domestically produced products using imported materials are effected by interest rate fluctuations.

    (3) Interest rate adjustments have been successfully used to control inflation by Federal Reserve Chairman Volcker under the Nixon Administration which lead to the Reagan Presidency which found Supply Side economics could also used interest rates to control inflation. 

    (4) Nothing prevents businesses in writing contracts based on payment in gold. Most foreign contacts use foreign currency futures to hedge against interest rate fluctuations and these vary well could be gold instead of USD.

    (5) The Great Depression lasted 43 months and was only ended by going off the Gold Standard.

    Countries that went off the gold standard 1st ended the depression in their country sooner.

    (6) Using legislation fixing USD to gold won’t end politicians from managing money supply because the next Congress can pass a law to undo it.

    (7) Forcing banks to hold gold in their vaults takes gold out of circulation from other uses (investing, dentistry, aerospace, electronics, jewelry, etc).

    “The U.S. officially stopped using the gold standard in 1971 under President Nixon. At the time, inflation was growing and there was a gold run on the horizon. Nixon's administration ended the dollar convertibility to gold, which ended the Bretton Woods System”

    “After WWII, the Bretton Woods agreement forced Allied countries to accept the U.S. dollar as a reserve rather than gold, and the U.S. government pledged to keep enough gold to back its dollars. In 1971, the Nixon administration terminated the convertibility of U.S. dollars to gold, creating a fiat currency regime.”

    Paul Krugman, well-known economist stated, “the new issue of The Weekly Standard has a piece urging the GOP to "Go Bold With Gold" as in the gold standard. This idea pops up in right-of-center circles constantly, but it's a pure figment of ideological thinking totally devoid of upside to anyone at all.”

    https://www.forbes.com/sites/ralphbenko/2014/06/02/enacting-jack-kemps-gold-standard-will-bring-stupendous-growth-to-america-and-the-world/amp/

    https://www.forbes.com/sites/nathanlewis/2016/12/01/jack-kemps-gold-standard-act-of-1984-shows-us-how-its-done/amp/

    https://www.govtrack.us/congress/bills/118/hr2435/cosponsors

    https://www.congress.gov/bill/98th-congress/house-bill/5986

    https://www.miningforschools.co.za/lets-explore/gold/uses-of-gold

    https://www.investopedia.com/terms/g/goldstandard.asp

    https://www.vox.com/platform/amp/2014/7/16/5900297/case-against-gold-standard

  • 2,380
    Martha
    04/19/2023

    You guessed it John, it was two Republicans who introduced this bill.  Anytime a Republican introduces a bill, you'd better look very closely at it as 9 times out of 10 it's going to harm the American public.

  • 506
    Thomas
    Voted Support
    04/19/2023

    The petro dollar is failing and the continuous devaluation of our currency weaker and weaker. The purchasing power of our dollar keeps getting weaker and affects the lower class th e most. Bring back the Gold Standard!

  • 3,594
    John
    Voted Oppose
    04/19/2023

    I can't stop laughing, I can't even imagine what kind of idiot thought of this. Obviously someone without an ounce of a background in economics. L O L. It had to be a republican.

  • 1,259
    justiceforamerica
    Voted Support
    04/19/2023

    Watch Democrats run to buy gold.    I do support the gold standard, the impeachment of JoeBama Biden, MyOrkas and then prosecution of Fauci and many others. 

    GOP get this done and you have done much to return America to a far stronger place.  

  • 141
    Jimmy b
    Voted Support
    10/01/2023

    Gold

  • 487
    Abby
    Voted Oppose
    07/20/2023

    You forget one of the biggest problems with the bill. There is only an estimated 244,000 tons of gold existing in the world. The current US economy would need to magically create even more gold out of then air for things to not loose worth. And the US would have to hoard every scrap of gold in the world. That leaves no room for growth. So you would be doing the same job but be paid less but supposedly be worth more on the world market. Things might end up costing less but you would be making less too. So that 40k per year job would on the world market supposedly be worth more while shackling people in the US to how much gold or precious metal the US could hoard and yank out of circulation. Bad trade for everyone

  • 35
    Joel
    Voted Oppose
    05/17/2023

    We need to stop looking backwards to solve the very complex problems we now face.  Until we have progressive forward thinking leadership, we're doomed to remaining stagnant as a Country.

  • 158
    Jonathan
    Voted Oppose
    05/17/2023

    Please vote NO 

  • 53
    TXgirl
    Voted Support
    05/11/2023

    Bring back the gold standard. Just like with us, our government should not spend money they don't have...much less spend money that is based on air. 

  • 51
    Kathryn
    Voted Oppose
    05/01/2023

    This seems completely unnecessary...I have a hard time believing that the party of extreme capitalism gives a damn about spending at all. We waste billions on corporate welfare then blame all our financial troubles on people with food stamps? Gtfoh. In fact a lot of recently introduced republican bills are just a waste of time and resources. Wtf are y'all doing up there?! 

  • 55
    Deb
    Voted Oppose
    04/30/2023

    Stay the course and maintai the defining elements of determining the gold standard.

  • 68
    Kalani
    Voted Support
    04/29/2023

    Advantages of a gold standard:

    Stability: A gold standard can provide stability to the monetary system by limiting the ability of governments and central banks to create money and inflate the currency supply.
    Inflation control: A gold standard can help control inflation by providing a fixed supply of currency that is tied to the value of gold.
    Confidence: A gold standard can increase public confidence in the monetary system by providing a tangible asset (gold) to back the currency.
    Discipline: A gold standard can help discipline government spending by limiting the ability of governments to finance deficits through money creation.

     

  • 50
    Amber
    Voted Support
    04/26/2023

    The fiat dollar isn't backed by anything other than thin air which is why our banks are now crashing. Backed the dollar with hard tangible assets, gold, silver and other commodities. This is a no brainer. 

  • 7,289
    larubia
    Voted Oppose
    04/21/2023

    "Most economists agree 99% of why the U.S. got out of the Great Depression was the break with gold ."  
    NPR Jacob Goldstein, Why We Left the Gold Standard

  • 3,645
    Kevin
    Voted Oppose
    04/20/2023

    More RepublicaNazi foolishness.

  • 6,558
    Bruce
    Voted Oppose
    04/19/2023

    Right...  

    Let's all get into the Way-Back Machine and go back in time.  

    This is moronic.  

    Let's have an adult conversation about the fact that money is a made-up concept,  It only exists because we all agree that it does and we agree to a certain value.  

    Throwing Gold back into this equation does not really change anything.  Except we would have to worry about bad actors hoarding gold to screw with the world's economy... 

  • 876
    bojo
    Voted Oppose
    04/19/2023

    There's a reason we got off the gold standard and stayed off.  Being off the gold standard allows much more flexibility in dealing with economic depressions and recessions.  Going back to the gold standard would put us out of sync with the rest of the world's economies and result in economic disasters much worse than we have seen in the last 50 years.

  • 488
    Henry
    Voted Oppose
    04/19/2023

    This is a "red herring" at this point. There is no realistic way that this will help manage our debt, our economy, or anything else it claims it will do.

  • 1,832
    Dawn
    Voted Oppose
    04/19/2023

    It sounds good on paper, but let's be honest; shifting to Gold will only make the poorest even more poor & the richest way too rich.

  • 123
    SITMWY
    Voted Oppose
    04/19/2023

    The gold standard worked in the past because the value of a currency was defined by the fixed price of gold.  The only way to increase the amount of currency was to acuire more gold or to adjust the fixed price.  This constrains the government in times of extraordinary need such as a major war, pandemic, market collapse, etc. when more spending is necessary.  HR 2435 proposes to tie the value of the dollar to the market price for gold.  Just in the last 10 years, the market price of gold has ranged from a low of $1,350 an ounce to a high of nearly $2,300.  Where is the stability in that?  That type of fluctuation would result in wild gyrations in supply.  No country in the world currently ties its currency to a fixed asset.   Seems like its proponents have a fanticized memory of the "good old days".

  • 13.1k
    MrGeer
    Voted Oppose
    04/19/2023

    I'm not an econimist, but niether are the people who dreamt this up. we can't ( despite republicans attempts ) go back to the 1800s. this is beyond inept. 

  • 1,512
    Mike
    Voted Oppose
    04/19/2023

    Not one single country in the entire world has currency backed by gold (or any other precious metal).  Not one.  What a ridiculous idea.