1983: Ron Paul Debates Federal Reserve Governor 1of7

Debate on the Gold Standard, featuring Congressman Ron Paul and Charles Partee, member of the Federal Reserve Board of Governors. This debate took place at the 1983 Capital Hill Gold Standard Conference in Washington, DC, which was hosted by the Ludwig von Mises Institute.

Category:

News & Politics

Tags:

• ron
• paul

[YOELTHEKING]

The Fed is what's wrong. Its needs to die!

[seantheamazing]

I love how 25 years later he's saying the same stuff

[RKAddict101]

@hoodoo961 I'm not saying deflation is good thing, I'm disagreeing with the causes of deflation. Deflation is caused by a decrease in the money supply, not by a decrease in the money supply RELATIVE to production. Inflation is the same. If I increase the money supply, it is STILL damaging even if production is increasing. If the money supply is fairly constant, such as in the case of gold, neither will be much of a problem.

[hoodoo961]

@RKAddict101 But what if you have more dollars- the point is to grow income and total purchasing power, but inflation and deflation are both distortionary. Economic progress is measured by increased production of goods and services per capita, not a swelling of a currency. Think of it this way: if we halved the money supply tonight, would we all be twice as rich tomorrow? Our dollars would buy twice as much, right? Read Irving Fisher on debt-deflation for more.

[RKAddict101]

@hoodoo961 Of course it's a good thing. I can buy more with one dollar than I used to be able to buy? That's progress, my friend, not economic failure.

[Juangalt]

@eneliatarknenah

I'd do the same, but that might reduce the value of your dollar...

[lomocan]

@hoodoo961

"But seriously, look at the history of deflation"

Please study Fractional-Reserve-Banking which ends up creating "non-existing money" & it is "vanishing" of this money (often intentionally) is what leads to SUDDEN deflations,recessions & depressions benefitting those who control the system ie bankers & politicians & their business-budies ( watch?v=lXb-LrVkuwM ). Under REAL gold-standard there'd GRADUAL deflation ie every dollar you save today will buy more goods/services in future

[degenerate82]

@hoodoo961

even a 'pure' barter system (no fiat or precious metal standard) is subject to manipulation, even though it is by far the best system, bar none. famines and artificial shortages can be created by those with the economic incentive to do so. Just look at diamonds. People just need to be more intelligent and have a sharper understanding of how economic models work, which is a stretch.

[periechontology]

@hoodoo961

it leads to reality; the money is supposed to keep up with goods.

[selfrealizedexile]

I need to do a lot more research on the matter, but it really does seem like statist economists have band-aid solutions and explanations for the economy, nothing quite as elegant or all-containing like the Austrian theory.