Trump talked about bringing back the gold standard and as we know he's in the process of taking out the Rothschild thieves. I don't know anything about economics but people say everyone will be more prosperous if the gold standard comes back. How will the gold standard affect us? Thanks
EDIT: Thanks for all your comments guys! Y'all helped me understand
Huge positive impact, but initially it would probably be negative and very disruptive. The overall positives are many. The biggest one is that it would forcefully restrain government. With paper money, government can print and add endless new programs and projects. Government cannot print gold. Anything they spend has to come directly from taxes, making people far more aware/averse to government spending.
A country on a gold standard is night and day to paper money. Gold standard will mean people save more, will make banks more responsible, will make businesses smarter and more likely to serve an important purpose in the economy. It will make the value of our money increase over time. It will mean we can work less hours yet have more prosperity. Gold was and is THE FUTURE, even though it's currently in our past. They have taken us back in time to an archaic system called "paper money."
Value of money should not increase over time. This is bad for a variety of reasons. Money value should be stable.
Value of money increasing is good because it encourages savings. If the value of your money held in the bank is rising over time, people are more likely to keep it in the bank and delay spending. The bank in turn then has capital available to provide loans- allowing home loans, business loans, etc. The more savings a bank has to give as loans, the more new businesses we will see, the more people will be able to purchase new homes. What downsides do you refer to- my guess is that people will horde their money and stifle the economy. I don't think this theory holds true. The purpose of earning money is ultimately to spend it and enjoy the fruits of your labor. People will ultimately spend their money, but a currency with increasing value encourages more savings which is the lifeblood of a real economy.
Deflation also discourages entrepreneurship and capital investment (hurdle rate is higher). People who own homes with mortgages have to pay back their dollar-denominated loans with more expensive dollars. Businesses are disincentivized from providing a static salary. Gig jobs become harder to get. The pace of spending slows. Exports fall. Deadweight loss of existing taxes and subsidies become much more egregious. Transaction costs of options and futures contracts increase. Insurance policies must be managed more carefully. Long-term leases are disincentivized. Long-chain production activities (like mining and oil extraction/refining) become compressed, discouraging investment. There are mix effects that make it all very complicated.
Instead of all this, best situation is stable money, with neither inflation or deflation.
Why would people not invest in mining? There are huge profits to be made. If I invest 100 dollars today and make 1,000 tomorrow, that is greater than the rate of deflation.
The decrease in prices will not be sudden and chaotic. It will be a slow, heavy, downward pressure, that takes time to occur. In the meantime, of course people will still invest and make transactions. The point of an economy is to make money and to secure resources.
People will just have to calculate their savings as more valuable than they are currently. This will make people more hesitant to make risky investments, which is a GOOD THING (Bernie Sanders voice). It will encourage frugality, and wisdom in investments over speculation and risk-taking.
Prices will naturally decrease in a gold based economy. Wages will too, slowly. Yet, the value of your money will increase. A dollar saved today is 1.50 in 2 years.
Thanks for the comment bro!