Steve Forbes: "You've Got To Get The Money Right," Steve Lonegan: "Fix The Dollar"

Forbes Article

     This article, taken from Forbes.com discusses the effects of the gold standard on the dollar. The article focuses on a campaign waged by Steve Forbes and Steve Lonegan which has a goal to reinstate the gold standard. They argue that before 1971 America was continuously prospering, but after the dollar went off the gold standard more economic struggles occurred. Since the dollar is no longer good as gold it is not a solid backed up currency and that is the basis of many problems.

     I agree with this article that the lack of a gold standard is not good for the economy. The country has been off the gold standard for 40 years and inflation has increased far more drastically since then in comparison to how it had increased on the gold standard. I think the country would be better off if it returned to a system where the currency was backed up by something tangible instead of currency being manipulated by the Federal Reserve.



The Federal Reserve's Explicit Goal: Devalue The Dollar 33%

Forbes Article



     This article was taken from Forbes.com and discusses the how the Federal Reserve manipulates the economy, often in a negative or inefficient way. The article critiqued the actions of the Fed harshly at times. The Fed can influence the economy greatly at times by flooding the market with funds in circulation. This makes it possible for people to spend more money in a attempt to boost the economy. People are able to spend more money because more money will be available to loan out from banks.
     It seems the Fed often gets over involved in its manipulations. Instead of giving slight help in the desired direction, manipulation is often pushed too far and end in failure. The Fed should decrease its involvement in the market and only step in when things are heading in the wrong direction.
     The goal the Fed tries to achieve in the short term in an increase in employment, the methods they use may prove results at the time but the Fed is decreasing the value of the dollar by 2% each year. 2% may not seem like much but over time the dollar will lose much of its worth.