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Sagot :
Nixon finalized a process that was begun by FDR in the Thirties. The history and reasons for abandoning the gold standard are complex, but it all comes down to government control of the economy. As long as a gold standard— or any standard based on tangible specie— is in place, the money supply must be connected to the specie, and paper money must be redeemable in specie. But that connection limits the money supply, and in turn connects it to economic productivity and the laws of supply and demand.
So generally, a gold standard is good for an economy. But it’s bad for Leviathan government. Generally, governments want to do three things economically: 1) Protect their favorites from economic competition; 2) extract as much wealth as possible from the economy; and 3) manipulate the economy for political purposes, not least of which is making sure the economy is surging at election times. Typically, governments accomplish these purposes by expanding the money supply— usually by expanding credit, but sometimes just by printing more currency, and manipulating interest and discount rates. But with a gold standard— that is, with the money supply connected to a tangible specie— it’s hard to manipulate the money supply.
So governments abandon the gold (specie) standard and issue fiat money. Problems (for government purposes) solved. Now governments can expand the money supply and manipulate rates as much as they want.
So in a nutshell, that’s why Nixon abandoned the gold standard. He finished a job that was begun by FDR, and made it possible for the government to take complete control of the economy to suit its own purposes.
So generally, a gold standard is good for an economy. But it’s bad for Leviathan government. Generally, governments want to do three things economically: 1) Protect their favorites from economic competition; 2) extract as much wealth as possible from the economy; and 3) manipulate the economy for political purposes, not least of which is making sure the economy is surging at election times. Typically, governments accomplish these purposes by expanding the money supply— usually by expanding credit, but sometimes just by printing more currency, and manipulating interest and discount rates. But with a gold standard— that is, with the money supply connected to a tangible specie— it’s hard to manipulate the money supply.
So governments abandon the gold (specie) standard and issue fiat money. Problems (for government purposes) solved. Now governments can expand the money supply and manipulate rates as much as they want.
So in a nutshell, that’s why Nixon abandoned the gold standard. He finished a job that was begun by FDR, and made it possible for the government to take complete control of the economy to suit its own purposes.
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