Hawaii House Bill HCR110

Hawaii 2024 Regular Session

• Introduced: 3/7/24
• Refer: 3/13/24

Caption

Urging The President Of The United States And United States Congress To Return The United States Monetary System To The Gold Standard.

Impact

The proponents of HCR110 argue that reintroducing the gold standard would provide a mechanism to limit government spending and counteract the growing national debt. They posit that a return to this monetary system would also buffer the economy against potential crises, offering a safeguard against overreach in fiscal policies. By tying the currency's value to a tangible asset, supporters believe it would restore confidence in the financial system and fortify the dollar's stability in relation to international markets.

Summary

House Concurrent Resolution 110 urges the President of the United States and Congress to return the United States monetary system to the gold standard. This resolution recognizes the gold standard as a monetary system where the value of the currency is directly tied to a reserve of gold. The resolution also points out the historical context, noting that the U.S. operated under variations of the gold standard until 1971, when it was suspended under President Nixon's directive. This abandonment is cited as a fundamental factor contributing to the economic downturn experienced during the 1973-1975 recession and the ongoing instability of floating currencies.

Contention

However, there are potential points of contention surrounding this resolution, especially given the complexities involved in reestablishing the gold standard. Critics argue that a rigid monetary system tied directly to gold could limit fiscal flexibility, making it challenging for the government to respond effectively to economic fluctuations. They warn about the complications that might arise from attempting to establish a fixed ratio between gold reserves and currency in circulation, and concern persists regarding whether such a system could accurately reflect contemporary economic conditions.