There has been a lot of debate about the gold standard since the
untied states has switched to the flat currency in 1971 when you could no
longer trades in U.S. dollars for gold. There is a lot of debate thought to
whether the old standard should be used again by the U.S. government.
Some of the main points to this argument are that gold never loses its
value, the prices of goods would rise,
The first argument is that gold never loses its value, which is very
true. Gold has been considered a precious metal since 550 B.C. Its safe to
say that gold will never become worthless like other metals haves. While
this a valid point the con to this is that Gold is a limited resource on earth.
So that while it may never lose value, there is only a set amount of it in the
earth’s surface that is mineable. Which means that as the U.S. grows there
is no way to tell if the earth has enough gold to support a growing
populations currency.
Switching to the gold standard would cause the dollar to lose a lot
in the long run of the economy. Which means that effect of the