I am always confused by this. The barter system requires I have something you want, in exchange for something I want. But a barter system is a little cumbersome in this day and age. So I take something I have (time and knowledge) and exchange it for something my employer has (paper money).
With that paper money I am able to obtain things I want.
Now, I make more per hour then I did in 1970, but true, things cost more as well.
My standard of measurment is how many man hours do I have to work to get something I want.
In 1970 it took me 1 hour of labor to fill my VWs 10 gallon tank (.30 a gallon or $3.00), if I make $30 an hour today, and I pay $3.00 a gallon to fill a tank of gas, the numbers are inflated, but the basic standard, 1 hour labor remains the same.
With my standard unlike gold, the supply is open ended. What happens when we need more "money" in circulation then we have gold to back it?
Wouldn't this cause a hardship on the economy?
Again, I don't know, but can someone explain to me how having a gold stand will make every thing perfect?
It'll make the guys with a 3 year supply of tuna and bottled water in their fallout shelter feel better. Other than that, it'd be a disaster for the U.S. economy
"In 1970 it took me 1 hour of labor to fill my VWs 10 gallon tank (.30 a gallon or $3.00), if I make $30 an hour today, and I pay $3.00 a gallon to fill a tank of gas, the numbers are inflated, but the basic standard, 1 hour labor remains the same. "
So you've worked your whole life and your standard of living is no better than 35 years ago. You've proven my point. The government has stolen from you by debasing the currency.
"In 1970 it took me 1 hour of labor to fill my VWs 10 gallon tank (.30 a gallon or $3.00), if I make $30 an hour today, and I pay $3.00 a gallon to fill a tank of gas, the numbers are inflated, but the basic standard, 1 hour labor remains the same."
Perhaps so, but that gallon gets you further. Average MPG went up over ten miles between the early '70's and 2000. My dad had a VW bug in 1970 - his current van gets twice the milage that bug did, and is a much more comfortable ride, to boot (just for starts, it has a heater that actually keeps you warm ;) ). By 2004, passenger cars would go twice as far on a gallon of gas as cars in 1974.
http://www.dep.state.fl.us/energy/reports/pdf_2002/table19.pdf
http://www.autosafety.org/article.php?did=812&scid=77