Imagine…
(media.greatawakening.win)
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You have to actually have the gold in reserve to issue new bills. So yes, more bills would circulate, but they wouldn't be worth any less because they're backed by the same amount of gold per issued note
We'd support the population through taxes and other forms of revenue. If you just count tax revenue, the US collected 4.7 Trillion in 2023. Our three biggest expenditures are Medicare/Medicaid, Social Security, and Defense which cost around 3.6 trillion dollars per year. That's taken care of with just tax revenue alone, no printing required.
I'm not explicitly advocating for a return to the gold standard, it just prevents the government from abusing the taxpayer. Deficit spending has huge benefits too, but only if you do it responsibly. Getting to 32 trillion dollars in debt and having a debt to asset ratio of 134 percent is not responsible
Wouldn’t we be unable to collect so many taxes if there wasn’t that level of gold? I mean…I don’t think we had that much gold, therefore, we can’t have that many people. Right?
That happened many times in the US and in other countries which is what led to the initial float of the dollar by Roosevelt. It definitely worked at the time, with the influx of money reversing the huge deflationary pressures that were prolonging the Great Depression
You could argue that deflation like that is worse, and in many ways it is. But when the dollar is allowed to be devalued consistently for 53 years like it has been, you have issues like housing costs. Median home price pre "Nixon Shock" was around 24k, and has increased 20 times that since, while the median household income has only increased by 10.
As you said, the consistent increase in the population would require the gold supply to remain above a certain threshold, and I wouldn't trust our federal reserve banking system to be able to manage that, nor would I trust other nations to play nice. With how large our trade deficit is, it wouldn't be long until hostile nations drained us of all our gold and collapsed our financial system yet again.
Thanks for this insight.