Urging The President Of The United States And United States Congress To Return The United States Monetary System To The Gold Standard.
Impact
The resolution suggests that re-implementing the gold standard could help mitigate government financial crises and stabilize the economy against future recessions. Since the gold standard restricts the amount of money that can be printed based on existing gold reserves, this could lead to a more disciplined fiscal policy. However, the impact on state laws could be significant, as local and state governments may have to adjust their financial regulations and budgeting practices to align with a new monetary framework too reliant on gold reserves rather than on fiscal flexibility.
Summary
House Resolution 91 urges the President of the United States and Congress to restore the U.S. monetary system to the gold standard. The gold standard refers to a system where a country's currency value is directly linked to gold reserves, a practice that the U.S. abandoned in 1971. The resolution argues that this shift has had negative repercussions on the economy, contributing to the 1973-1975 recession and resultant economic instability from fluctuating currency values. Proponents of the bill believe that returning to this system could provide more stability to the currency and limit excessive government spending that has led to rising national debt.
Contention
Debate around HR91 may focus on the feasibility of returning to the gold standard in the modern economic environment, with critics asserting that it could impose harsh limitations on monetary policy, making it harder to respond to economic downturns. There are concerns that such a return could hinder economic growth and reduce the ability of the government to accommodate financial emergencies effectively. These issues would likely spark extensive discussion among economists, policymakers, and legislators about the long-term viability of such a monetary system and its ramifications for fiscal governance.