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Affluent Christian Investor | October 20, 2021

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The Gold Standard Means A Rising Standard Of Living

The Gold Standard gives a monetary system the best stable foundation; no other civilization has found a better way to do this. The Gold Standard, to our knowledge, creates the underpinning for an economic system under Natural Law. This system also keeps an interventionist government in-check by preventing it from issuing currency and credit on a whim, while providing stability for productivity. In this manner, productivity drives efficiency and output upward and creates more wealth by rapidly supplying the market with goods and services serving other citizens. In fact, this domino effect is more strategic than the natural increase of currency and credit as gold is mined and brought into circulation. Murray Rothbard clearly and succinctly explains:

The supply of gold is severely limited, and it is costly to mine further gold; and the great durability of gold means that any annual output will constitute a small portion of the total gold stock accumulated over the centuries.  The currency will remain of roughly stable value; in a progressing economy, the increased annual production of goods will more than offset the gradual increase in the money stock. The results will be a gradual fall in the price level, an increase in the purchasing power of the currency unit of gold ounces, year after year. The gently falling price level will mean a steady annual rise in the purchasing power of the dollar or franc, encouraging the saving of money and investment in future production. A raising output and falling price level signifies a steady increase in the standard of living for each person in society.[1]

The economic model of the United States was directly based on Rothbard’s explanation and how it became the most prosperous civilization in the history of the world by following this method—heads above any successful civilization of the past. To this day, America remains massively more wealthy and prosperous that any other modern civilization. It only goes to show how when the Natural Law of economics rewards those who follow our Compact, or covenant. God truly blesses us, and He blesses us mightily.

Thus, when we stay true to this (to the best of our ability) we live in liberty and abundance. The United States has proven this over the past several centuries. That was the purpose of our Compact – to try to align us as best as possible to Natural Law and God, our King. Therefore, gold becomes precious in this regard, not as a precious metal, but as a precious foundation to hold our government under the People and to service us under Natural Law; God’s Law.

[1] Murray N. Rothbard, 2007 (originally published in 1994), The Case Against the Fed, (Auburn, AL: Ludwig von Mises Institute), pp. 20-21, emphasis added.

This article originally appeared on National Review.

 

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