We are fortunate to be in a time of renewed interest in a dollar as good as gold. The Republican Party’s 2012 platform adopted at the convention in Tampa calls for a commission to study backing our currency with gold. As the Federal Reserve’s policies of zero interest rates and quantitative easing continue to fail to lift the economy, the need for comprehensive monetary reform is becoming more evident.
To accelerate and inform this debate, the American Principles Project has produced two white papers about the gold standard. Special thanks go to the Searle Freedom Trust for providing the funding for this research.
The first, “The Gold Standard: the Foundation of Our Economy’s Greatness,” is written by APP advisory board member Brian Domitrovic, author of Econoclasts: the Rebels Who Sparked the Supply-Side Revolution and Restored American Prosperity and professor of history at Sam Houston State University. Dr. Domitrovic, an expert on American economic history, outlines the empirical case that under the gold standard the U.S. economy grew at its highest levels for the longest periods of time. The closer we anchored our money to gold, the more prosperity we enjoyed.
The second paper, “Implementing a Twenty-First Century Gold Standard,” is written by APP economics director Rich Danker. It discusses in clear terms the technical steps to create a gold standard in today’s economy. Along the way it describes the safeguards and policies needed for a gold standard to be functional and sustainable and how the Federal Reserve could operate in compatibility with it.