Mises Blog: Utah Going Gold?
Posting to the Mises Economics Blog, Douglas French (president of the Ludwig von Mises Institute
), comments on the Salt Lake Tribune's first article on the Utah Sound Money Act. He critiques the fallacious "gold supply" argument advanced in the article as follows:
Sadly, the Tribune fished around for a quote on the proposed legislation and found Utah State economics professor Alan Stephens who says using gold as money is a mistake because there isn’t enough of it. The economy can’t grow unless there is more money created, according to Simpson. In other words if we didn’t have inflation the economy just wouldn’t go anywhere. Producers create goods and services only because the Fed creates money. That’s what they’re teaching at Utah State.
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