...Goldbugs argue that there will always be enough gold in a gold-based money system to go around
I've not heard that argument made. Can you give me some names and dates? Thanks.
The drawbacks of limiting the medium of exchange to precious metals were obvious as soon as the Founding Fathers decided on a precious metal standard at the Constitutional Convention,
Go dig up what George Washington had to say about paper money after the Revolution. You obviously haven't.
When the money supply contracted during the Great Depression,
Except that's not what happened during the GR. Go do some of your own research.
L
Ben Franklin was called the father of paper money. Colonists, particularly in Pennsylvania, had created a super economy using script money and then George II crashed that economy into depression by banning script money. Or did you actually think anybody was going to fight a war over tea or some tax on tea??