“So when gold supply increases 1% a year and the economy grows 3% a year, does that cause any problems? Or would we be just fine even if the money supply didn’t grow at all?”
The purchasing power of gold relative to other goods can change. If technology and efficiency improve, more goods can be produced at a lower real cost. And that is assuming that market forces do not encourage gold & silver exploration and mining to ramp up to meet demand.
You may have heard of this exploration and mining thing in regards to other valuable resources and commodities, such as oil.
Are you saying that we can have inflation or deflation under the gold standard?
If technology and efficiency improve, more goods can be produced at a lower real cost.
You're not confusing increased productivity with deflation, are you?
And that is assuming that market forces do not encourage gold & silver exploration and mining to ramp up to meet demand.
That's just what our economy needs, more resources diverted to mining a pretty yellow metal.....because it's MONEY!