Why the gold standard causes deflation and volatility

Añadido: 2026-05-23

[00:00:00]The gold standard is stupid. And I'm going to prove it to you. So, I'm using a new software thing here. So, we'll see if this works. Hopefully, it does. But, uh all right. So, we're going to go to my screen here and we're going to share screen. We're going to go to my man Brian Wesbury, who I'm a big fan of, right there. Yeah, this guy right here.

[00:00:18]Brian Wesbury over at uh First Trust FT Portfolios right here. FT Portfolios it You can see FT Portfolios.

[00:00:25]Now, he's just wrong here, but it will go into it.

[00:00:28]To say the least, since its inception in 1913, um the Federal Reserve has had its ups and downs. One thing that most people don't know is that prior to the invention of the Fed, other than during wars, there was almost no inflation.

[00:00:43]Various sources, including the Federal Reserve banks, show that the purchasing power of a dollar in 1900 was the same way it was in 1800. Hey, that must be great, right?

[00:00:54]The government did print and borrow money during wartime, which caused inflation, but in between the wars, the US is often on a gold standard and as such, the economy experienced deflation.

[00:01:05]A gold standard basically keeps the money supply stable. But, technology increases the production of goods and services.

[00:01:14]So, if we don't print more money, the average dollar price of things falls.

[00:01:19]More goods chasing the same amount of dollars is deflationary.