I am dismayed by The Daily Iowan column the Minnesota Daily published Nov. 8: “Ron PaulâÄôs economy.”
This sentence, “If the United States decided to strictly adhere to the gold standard … the total money supply would shrink by 70 to 80 percent,” fails to explain that prices would also fall by an equal or greater amount. The original author does not understand inflationâÄôs effect. Inflation, an increase in the money supply, is not something to celebrate. If inflation is good, why doesnâÄôt the Federal Reserve print everyone in the United States $10 million? We would all be rich, right?
Anyone would be able to tell you this is flawed logic. With an increase in money, prices would skyrocket.
