With the gold standard, you are faced with a limited supply of money which creates several major obstacles to economic growth:
-zero-sum economics - with a fixed supply of money (gold) one man cannot become rich without impoverishing others
-limited ability to lend money - even a guy wiht 30% down an a 700 credit score might not be able to get a mortgage because a bank literally “runs out” of money to lend
-banks could lie about gold reserves actually existing - which is one reason the gold standard was moved away from in the first place
even a guy wiht 30% down an a 700 credit score might not be able to get a mortgage because a bank literally “runs out” of money to lend
Yep, the current system is so much better (sarcasm). Just print more “money”. That has never worked in history and won’t work much longer.
You have some peculiar ideas of how the gold standard operated. Gold operated as the monetary base, not the sum of all bank money and credit money in the banking system. Von Mises Theory of Money and Credit is a good source for learning how it worked.
Alexander Hamilton built a large quantity of money for the US on a small stock of gold by accepting paper dollars or bank money for taxes, and paying out gold for interest on the debt, if gold was requested. Being on a gold standard didn’t confine the economy to the tiny amount of gold on hand in the Treasury.