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Why does the United States have an inconvertible money standard?
Title: Why does the United States have an inconvertible money standard?
Category: /Business & Economy/Finances and Investments
Details: Words: 266 | Pages: 1 (approximately 235 words/page)
Why does the United States have an inconvertible money standard?
Category: /Business & Economy/Finances and Investments
Details: Words: 266 | Pages: 1 (approximately 235 words/page)
Why does the United States have an inconvertible money standard?
The United States economy has an inconvertible money standard, due to the fact of two main reasons; the first reason is that the United States cannot possibly backup the dollars of the growing economy and the growing population of the nation. The second reason is that gold is a very scarce resource and gold cannot be produced or created, it occurs naturally in the earth.
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showed last 75 words of 266 total
gold would go up meaning the dollar value in America would go down or most likely a revolution against the government would occur due to the fact that they do no have all the gold to back up the citizens' money. Due to this, the United States has an inconvertible money standard. Not enough gold is available for the growing population so the economy needed something to make sure that people would not start fighting.