This article won’t go into a detail explanation, but if you do the work to think through all the outworkings of a gold standard compared to the current credit standard, you’ll see that the difference between them is quite stark:
Gold Standard
- Savings
- Rewards Investment
- Long Term Planning
- Stable Growth
- Consistent Prices
- Values Labour
- Upward Mobility
- Supports Small Business
- Limited Local Bank Runs
- Environmental Stewardship
- Natural Consequences
- Allows Creative Destruction
- Democratized Economy
- Societal Freedom
- Yield Baring Assets
- Accurate Price Measuring
- Fair Interest Rates
- Real Businesses
- One Time Purchases
Credit Standard
- Debt
- Encourages Consumption
- Short Term Profits
- Exaggerated Business Cycles
- Inflation Leading To Deflation
- Over Values Capital
- Wealth Inequality
- Creates Monopolistic Oligarchies
- Systemic Financial Collapse
- Environmental Destruction
- Unintended Consequences
- Props Up Zombie Businesses
- Government Controlled
- Financial Repression
- Asset Price Inflation
- Distorted Price Signals
- Low-Interest Rates
- Financial Engineering
- Subscription Model
