The US should go back to a gold standard

Refutation #1My opponent has responded by stating that production causes deflation and thus the U.S. should not go back on the gold standard. Here is why he is wrong. The gold standard does not limit the increase in the amount of dollars to just 2% a year, the average increase in the quantity of gold. The rapid economic growth and dramatic increase in the standard of living during the Industrial Revolution of the 19th century was accomplished under a gold standard. Under a 21st Century Gold Standard, the Federal Reserve would be required to maintain the value of the dollar in terms of gold and exchange gold coins and bullion for currency or deposits at the Federal Reserve. This would be accomplished through open-market operations, with the 260 million ounces of gold currently owned by the government acting as a buffer stock. There would be no requirement to increase this stockpile of gold in order to increase the amount of dollars in circulation.The key point in my refutation of my opponent's arguments in round 3 is that as long as the value of dollar is constant in terms of gold, then the Federal Reserve would be able to provide all the money the U.S. economy needs to fuel economic growth.So to conclude, the gold standard does not limit the increase in the amount of dollars and thus the U.S. trade deficit would not necessarily grow.Refutation #2This is much like my refutations above when discussing the village analogy. I have explained that we can produce more dollars as long as the Federal Reserve keeps the value of the dollar constant in terms of gold.Again, more money can still be produced and they can be kept at the value of the gold as long as their constant in terms of gold. Refutation #3Allow me to explain further depth why the gold standard did not create the Great Depression and other policies did. By 1928, the Federal Reserve was so "embarrassed" by a stock market on fire that it began a five year program where it would starve the economy of money. In 1929, the stock market crashed the day after some final hurdles were clear in Congress that allowed the passage of the Smoot-Hawley tariffs likely. That was a massive tax increase on international trade, rising the tax to 60% on 3,200 imported products. The economy, along with the stock market, started to into free fall. In 1932, Congress raised tax rates across the board which further caused economic troubles. The Federal Reserve raised interest rates, stood by as banks failed by the thousands, and hoarded its gold.The constant in the episode is the gold standard. The variable is federal intervention and the reach of tax policy. Therefore, the culprit behind the 1929-1933 event resides in taxes. During the 1919-1920 (which the federal reserve mismanaged causing it) recession went down in the context of gold, and we got the Roaring Twenties. They went up in the early 1930s in the context of gold, and we got the Great Depression. To associate the Great Depression with the gold standard is to make a hefty category mistake. The moral of the story: let the economy be! When the Federal Reserve engineered inflation from 1913 to 1919, which coincided with a huge tax increase, we experienced slow growth, then a recession. In the 1920s when taxes were low and the Federal Reserve kept its head down, we had one of thje great runs of all time. After 1929, as the Federal Reserve and the rest of the government got activist again, our economy plunged terribly and stayed low for a decade.To respond to my opponent's arguments that going off the gold saved the economy, he has missed some critical information. The United States went off the gold in 1933, and that year came in as badly as the Depression's trough year of 1932 in all major economic catergories. Then, the gold was put back on in 1934 (if at a higher price), and the recovery was mediocre due to FDR's interference in the economy and the rise of taxes. Also, going off the gold in the first place and the dollar devaluation against the gold had caused a lack of clairty in the system. Furthermore, the following countries; Britain, France, Italy, Germany, and Japan were all preparing for war or were already in wars by the 1930s. War production helped the economies in those countries.Now its time to refute my opponent's last argument that it does not lead to stability. Going on to the gold standard creates real growth for the economy. Let's look at some comparisions. Remember that the gold was taken off in 1971. We will compare the post-World War 2 era which had a gold standard to 1971 to 2010.Gross Domestic Product1947-1967: 4.1% Average1971-2010: 2.8% AverageReal Median Family Income1947-1967: 2.7% Average1971-2010: 0.5% AverageCivilian Unemployment Rate1948-1967: 4.8% Average1971-2010: 6.3% AverageConsumer Price Inflation1948-1967: 2.0% Average1971-2010: 4.4% AverageAAA Corporate Bond Yields1948-1967: 3.8% Average1971-2010: 8.2% Average As we can see there was higher GDP and family income while lower unemployment, inflation, and interest rates when the gold standard was in place during the post-World War 2 era. The gold standard did help in making the economy stable. During the entire post-World War 2 era, with all of the radical developments in the world economy, there were no financial crises in the United States until President Lyndon B. Johnson began to break from the promise that a dollar was worth one-thirty-fifth of an ounce in gold. Since abandoning the gold standard for a paper dollar, the American people (and people all over the world) have suffered through the following financial crises:1. 1973 oil shock2. 1979 dollar crisis, second oil shock3. 1982 Latin American debt crisis4. 1984 Continental Illinois Bank collapse (largest in U.S. history prior to the 2008 financial crisis)5. 1987 stock market crash6. 1989-1991 savings and loan crisis bailout7. 1990 Japanese bubble collapse and banking crisis8. 1994 Mexican peso crisis9. 1998 Asian currency crisis10. 2001 dot-com crash11. 2007-2009 housing collapse and international financial crisis12. 2010-2011 European sovereign debt crisisMaking the dollar as good as gold will bring order and stability to our monetary system and contribute to the prosperity and liberty of the American people. When you provide stability to the financial infrastructure to the economy, the private sector and business do what they do best which is economic growth to the entire nation and the world.Here are four ways the new gold standard will lead to economic growth:1. The Federal Reserve is required to provide all the money the economy needs to fuel real growth without inflation.2. When you save, you can do so knowing that the dollar you save will be worth a dollar when it is needed in the future.3. Those who invest and create jobs can do so without the fear that monetary instability and financial crises will destroy the value of their investments. 4. Investments in real, job-creating businesses will replace sterile investments in hedges against dollar depreciation including gold, foreign currencies, etc.So Apparently I have to make a CaseThe gold standard is good! It does not cause recessions and causes stability across the board for the economy. It does not cause deflation. ConclusionI have proven why the gold standard is good and should be brought back for the U.S. to use. Vote Pro!1. Herman Cain and Rich Lowrie, 9-9-9 An Army of Davids (seriously this is my only source for all my arguments so its obvious that I do not need to put in those tiny numbers and stuff)