Voters and Gold Standard

Voters and Gold Standard

Information on the Gold Standard based upon surveys done during the 2016 elections.  

gold standard

This is the first time we asked about monetary policy in this election cycle.  We asked if the dollar should be based on Gold’s weight.  This is more commonly known as the Gold Standard.  Party nominees have used currency manipulation as part of their argument against past trade agreements and how foreign competitors have screwed the American worker.

One type of monetary reform is tying the dollar or other currency to a commodity.  Throughout history, Gold has traditionally been used as a backing currency.  Much of the world was on a Gold standard before World War II.  And, even after the World War II, the world was on a Dollar standard.  The Dollar was connected to Gold until Richard Nixon removed the Gold Standard during his administration.

Colorado

In May, 35% of Colorado Voters stated yes.  Meanwhile, 28% disagreed.  The rest had no opinion.  Eight weeks later, 41% agreed the Dollar should be based on the Gold Standard.  Whereas, 29% said no.  Every major demographic group saw an uptick for their support for a Gold based dollar.  But, there was a significant difference between political parties.  In May, 45% of Republicans agreed the dollar should be based on gold/  Only 17% disagreed.  Eight weeks later, 52% of Republicans supported tying Gold and the Dollar while only 18% opposed it.  Twenty-two percent of Democrats in May and 26% of Democrats eight weeks later supported the concept of dollar based on gold.  This contrasted with 40% of Democrats disagreeing in May and 43% disagreeing eight weeks later.

Nevada

In Nevada, there were similar results.  A plurality of voters supported the Gold Standard.  Forty One point six percent of voters in May followed by 40.6% of voters eight weeks later supported the idea of the gold standard while only 26.5% of voters opposed this in May and 28% eight weeks later.  Blacks were least likely to be supportive.  Twenty-eight point four percent said yes in May.  This was followed by 35.7% eight weeks later.  Twenty Eight percent of Blacks oppose having a dollar supported by Gold in May followed by 33.8% eight weeks later.

While Blacks support for the gold standard increased, it is nearly even.  Nevadan Hispanics were the strongest backers.  Forty Seven point seven percent of Hispanics supported the Gold Standard in May and 50% eight weeks later.  Whites support nearly mirrored the overall voter supporter.  Forty two point two percent in May supported the Gold Standard vs. 40.4% in July.  Only 26.4% opposed the Gold Standard in May and 28% in July.

Republicans, just as they were in Colorado, were more likely to support the Gold Standard as 51.4% and 48.8% of Republicans in the two surveys.  Meanwhile 26.2% and 28.7% Democrats support the Gold standard.  Just as in Colorado, Democrats did not like the idea of a Dollar supported by a weight of Gold compared to Independents where there was an average of 18% in favor of those who supported it.

Wisconsin

The closet margin was in Wisconsin where the support for Gold standard was at 29.4%.  Opposition to it was 28.5%.  Twenty-seven point seven percent of blacks supported the Gold standard with 28.5% opposing.  Whereas, 30.7% of white voters supported the Gold Standard vs. 27.4% opposing.  Thirty-seven point three percent of Hispanics supported the Gold Standard and 36.5% of Hispanics did not.  Just as in Nevada and Colorado, Wisconsin Republicans and Independents are more supportive of using the Gold Standard.  Democrats, again, opposed the idea. 

Ohio

Ohio voters viewed the need for the dollar to be supported by a weight of Gold, by 39% to 24% with Republicans viewing the need to tie the dollar to Gold by a 47.5% to 16% margin.  Independents also favored tying the dollar to Gold by a margin of 42% to 24%.  Democrats opposed the idea by a 35.5% to 24% margin.  Black Voters barely approved tying the dollar to Gold by 31% to 29%.  Both White and Hispanic voters were more supportive by a 39% to 24% and 43% to 16.5%.

Other Polls

Voice Broadcasting’s post-election poll showed 37% of voters supported the dollar to be on the Gold Standard.  Twenty-eight percent said now with the rest of unsure.  Forty six percent of Republicans and 40% of Independents were supportive of weight of gold.  Whereas, only 25% of Democrats supported this.  Thirty-five percent of Democratic voters, 21% of Republicans and 27% of Independents oppose the idea.  Thirty-seven percent of Whites, 32%  of Black, 33% of Hispanic and 35% of Asians wanted the dollar backed by the weight of gold.  Whereas 28% of Whites, 29% of blacks and Hispanics and 26% of Asians did not.

In a Cyngal national poll, 41% of voters favored a gold backed dollar and 30% opposed it.  Forty-seven percent of Republicans, 41% of Independents and 35% of Democrats favored a Gold backed dollar.  Whereas 24% of Republicans, 36% of Democrats and 36% of Independents opposed the idea.  The rest  were unsure.  Forty-one percent of Whites, 44% of Blacks, 34% of Hispanics and 19% of Asians favored the Gold Standard.  Whereas, 31% of Whites, 25% of Blacks, 42% of Hispanics and 53% of Asian opposed it.

Monetary policy does impact trade policy.  Trump has made currency manipulation part of his attack on China.  But, it could easily be argued that the Feds quantitative easing is also currency manipulation.  The advantage of having currencies backed by commodities such as Gold make it more difficult to manipulate the currency.  The Gold Standard does have its disadvantages like other currency ideas.  It requires discipline upon government spending.  Many nations have chosen to escape the standard for that very reason.

Conclusions on the Gold Standard

We are not recommending one particular monetary policy over another.  But, stable money is a necessity for long term economic prosperity.  Central Bankers are often encouraged to inflate currency.  This allows governments to fund exhaustive spending program.  It also aids in exports.  Nor does long term inflation help the economy.  Many businesses can’t plan ahead if they are not certain what their investments will be truly worth.

There hasn’t been a debate on monetary policy since the late 1890’s.  Back then, William Jennings Bryant wowed the Democratic convention with stirring words that we shouldn’t crucify Americans on a “Cross of Gold.”  Certainly no modern day politician has even brought up the Gold Standard.  You have two generations of economists who have no experience with any monetary policy backed up by commodities.

Judy Shelton noted in a recent Wall Street Journal:

 “Nevertheless, Mr. Trump’s emphasis on currency manipulation brings into focus the shortcomings of our present international monetary system—volatility, persistent imbalances, currency mismatches—which testify to its dysfunction.  Indeed, today’s hodgepodge of exchange-rate mechanisms is routinely described as a “non-system.  No wonder so many workers employed by U.S. companies that manufacture products requiring substantial capital investment—automobiles and tractors, computer and electronic equipment—have become disenchanted with the supposed long-term benefits of free trade.

It is one thing to lose sales to a foreign competitor whose product delivers the best quality for the money; it’s another to lose sales as a consequence of an unforeseen exchange-rate slide that distorts the comparative prices of competing goods…To brand trade skeptics as sore losers is to malign them unfairly.  To resent being victimized by currency movements is not the same as being opposed to free trade, nor does it signal an eagerness to engage in protectionist retaliation. It’s simply an honest response to incongruity:  We need to reconcile global monetary arrangements with global trade aspirations… As former Federal Reserve Chairman Paul Volcker has observed: “Trade flows are affected more by ten minutes of movement in the currency markets than by ten years of (even successful) negotiations.””

Ms. Shelton point is that monetary manipulation affects trade negatively.  If Central bankers can’t maintain monetary stability, they are putting the benefit of free trade at risk.

Voters are willing to explore the Gold Standard.  But, many voters have no opinion on this issue one way or the other.  No more than 41% of overall voters view a dollar backed by Gold  as a good thing.  So unlike trade issues where voters have strong opinions along with Presidential candidates, most voters and politicians have no strong belief in what constitutes good monetary policy.  However, a government that inflates their economy is hurting their citizens’ ability to succeed.

 

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One Response to "Voters and Gold Standard"

  1. Is there not much more to this story? There were several Federal Reserve Systems. There was, or is the Creature from Jekyll Island. And now there is George Soros.

    There is the “power elite”, and “it” is in league with the Creature from Jekyll Island, the Federal Reserve.

    When America left the gold standard (any and all precious metals) it abrogated, abolished fiscal sanity, responsibility and accountability. The EU may well collapse, it is only a matter of time, and the George Soros’s of the world are speculating. The increase in fiat money via monetary easing, foreign and domestic, will most assuredly guarantee future inflation. And the evil winds bode ill.

    George has a very cozy relationship with the domestic radical progressives, vigorously thrown out of country’s in which he caused harm.

    Soros, the man involved in the financial collapses of Thailand, Malaysia, Indonesia, Japan and Russia. Why is it that Putin has thrown Soros out of Russia?

    “United State’s New Hero 3/23/12 ~ Vladimir Putin: Russia Issues International Arrest Warrant For Soros ~ NWO Overthrows Turkey & Jordan!”

    “Putin Issues Arrest Warrant for Financial Terrorist George Soros!! “

    “Financial terrorist and Hungarian bank dick, Convicted Felon George Soros… Russian Intelligence has fingered Soros for using cross-collateralized compounded Swedish and Danish foreign currency derivatives for the purpose of an attack on the Russian stock market. Soros’ use of these cross-collateralized compounded derivatives utilizing Luxembourg banks violates the terms of the Basil IIEuropean Union banking agreement.”

    https://politicalvelcraft.org/2012/03/23/breaking-united-states-new-hero-vladimir-putin-russia-issues-arrest-warrant-for-rothschild-henchman-leftist-savior-george-soros/

    And he was “The Man Who Broke The Bank of England” in 1992. The man credited with collapsing régimes through his Open Society Fund founded in 1979. His financial support is reported to have found its way into the 1989 Velvet Revolution in the Czech Republic, the 2004 Orange revolution in the Ukraine, and the 2004 Rose revolution in Georgia. He is credited with assisting in the coups in Croatia, Slovenia and Yugoslavia. For George, is that not an opportunity to bring chaos to America? Will this not put pressure on the dollar?

    And so the thread of flushing out George Soros would take us on a journey from:

    George Soros, who helped the Nazi government, confiscate the land of his fellow Jewish neighbors.”

    George who attended the Fabian London School of Economic and established the Quantum Fund used to attack currencies all across the globe.

    George has been associated with the financial collapses of Thailand, Malaysia, Indonesia, Japan and Russia.

    George was credited as “The Man Who Broke the Bank of England” in 1992.

    George is also credited with collapsing régimes through his Open Society Fund, the 1989 Velvet Revolution in the Czech Republic, the 2004 Orange revolution in the Ukraine, and the 2004 Rose revolution inGeorgia.

    George is credited with assisting in the coups in Croatia, Slovakia and Yugoslavia.

    George has run afoul of French law. A convicted felon in Italy in 2002, for his involvement in the socialist takeover of the largest private bank in France, Société Générale, he lost two appeals, but has the money to purchase a reversal if possible.

    George may now well be involved, through his many front organizations, in the destruction of America. He is committed to the devaluation of the dollar, in his words “A slow decline in value of the dollar, a managed decline.”

    George is embraced by Hillary Clinton, John Kerry and everyone his money touches.

    George has contributed to many American political organizations such as The Center for American Progress, The Apollo Alliance, MoveOn.Org, The Tides Foundation, NPR and many more. He is at war with Capitalism, his goal a “Global Society.”

    George, the spooky Dud, was directly, indirectly or mystically involved in the “Occupy Wall Street” movement.

    Why would he not be involved in delegitimizing Trump? And to what extent do those dysfunctions affect him financially?

    What is there not to love?

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