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Benefits And Disadvantages To The Gold Standard For The United States

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There are benefits and disadvantages to this for the United States. At first when I read this assignment, I had no idea what “Gold Standard” was. The Gold Standard is using the amount of gold one county possesses as the value of how much the country owns. The benefit to this is that it is fixed, and provides a stabilizing effect on the economy. This only allows the government to print as much money as it has in gold. This discourages inflation, budget deficits and debt, which will help not exceed the supply of gold on hand.
The United States is the world’s second largest gold mining country, so its supply of gold would be healthy compared to other countries around the world. But, there is another flip side to this coin. Is it too late for
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Gold can cause someone to do unthinkable things. Another thing that gold can lead to is death. Many people have been killed over gold in the old west. Another way gold can be deadly is that it is located in dangerous places because all the gold in safe places is usually gone. The final major way gold can be deadly is that it can be deadly extracting it from

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This gives government the ability to keep a steady balance in the economy. Another way the federal government can regulate money is by the monetary policy, which gives the government the ability to manipulate the money supply. As long as this power isn 't abused it can help restore order in the economy. Use what you’ve learned about the structure of Russia’s government and the power of its branches to describe how public

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McKinley, a republican, who “declared for the maintenance of the gold standard until it should be changed in bimetallism by an international exchange.” Not every country in the world is going to want to use gold and silver as a currency. Jennings brought up this quote because, as I said in the previous paragraph, Jennings did not think every country would want this currency nor would there ever be an international agreement on the currency. Now most people are agreeing with Jennings idea on the international agreement. People who were part of the convention months prior to his speech were saying that the gold standard was the only currency that should be used.

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McKinley said that there was such an abundance of silver that if turned into coins, could make more money and the economy would be stable again since the rich wouldn’t have it

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Before the Great Depression, the United States was one of the many industrialized countries that followed the gold standard, very different than what it is today. This enabled countries to conduct trade and exchange their products because others followed the same monetary system. In order to sustain the value of a dollar, countries had to follow the same system, however, as the Great Depression happened and countries began to leave the system of the gold standard because of reasons such as having an economy that is unable to keep up with the official system. For exapmle, after the First World War, the economy of Germany wasn't able to go on because of the immense debt that they owed. In the case of the United States, the Federal Reserve decided to sustain stability internationally instead of focusing on the prosperity of their country.

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“The bank is trying to kill me, Sir, but I shall kill it”, Jackson” as he said to the Vice President Martin Van Buren as he reacted to the charter. Yet, trying to make the value of gold and silver equivalent to paper is not really a great idea. Today right now, gold and silver is worth millions of dollars. Eventually, people are going to notice that it is going to get more difficult to find gold and silver. Trying to make them the same value would of be crazy difficult.

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“ The U.S. is among the last of the industrialized nations to abolish the peskiest little bits of coinage” (Source C). More and more counties will soon join in on the laughter as they dismantle their low value coins. It would be a different story if we used the pennies. Only about one-third of the pennies are in circulation, the other two-thirds of them are hiding in our chair cushions (Source C). Not only is the government losing money from the missing two-thirds, but it is also wasting money on workers.

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The country was moving towards a more industrialized economy, but the currency was backed by gold and silver, which limited the amount of money in circulation. Those who advocated for the gold standard believed that it would keep the economy stable, while those who advocated for the silver standard believed that it would help farmers and other debtors by increasing the amount of money in

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The Panic of 1893 left America in a state of severe economic depression. People began to question the American gold standard and US tariff policy. William Jennings Bryan called for the reform of the monetary system in America. He wished to put an end to American reliance on the gold standard, and argued instead for the “free coinage of silver”. This policy would be inflationary, rather than the gold standard, which was deflationary .

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First Backing the US dollar by gold or silver wouldn’t fix the problem the whole reason the US Dollar stopped be backed by Gold was because in the 1960s, European and Japanese exports became more competitive with US exports. The US share of world output decreased and so did the need for dollars, making converting those dollars to gold more desirable. The deteriorating US balance of payments, combined with military spending and foreign aid, resulted in a large supply of dollars around the world. Meanwhile, the gold supply had increased only marginally. Eventually, there were more foreign-held dollars than the United States had gold.

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