The Instigator
harrytruman
Pro (for)
Tied
0 Points
The Contender
Karan_m
Con (against)
Tied
0 Points

Should we return to the gold standard

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Voting Style: Open Point System: 7 Point
Started: 9/7/2015 Category: Economics
Updated: 2 years ago Status: Post Voting Period
Viewed: 613 times Debate No: 79477
Debate Rounds (3)
Comments (1)
Votes (0)

 

harrytruman

Pro

I think we should return to the gold and silver standard, accept my challenge?
Karan_m

Con

I don't think that would be a wise doing.
Debate Round No. 1
harrytruman

Pro

Value is a concept, it is something assigned in our minds, due to this enable to make a valuable currency, it must be associated with value, the most effective way to do this is to back it by gold, as people will always consider gold more valuable than paper, a lessened inflation rate Will be better for wage workers as minimum wage has to be adapted to inflation and this would protect them from the government failing to do so as it does, also it would be better for investment and savings as people would not loose as much money to inflation.
Karan_m

Con

Gold is very valuable thing and that is the reason it cannot be set as a currency.Because,for example,if you want to purchase a chocolate you cannot give gold for purchasing it.Further,we are having currency notes of many number(1,5,10,100,..).For making gold as a currency we would have to make many standards of gold.Besides,for your information,in the early days many such standards were used but in the end all of them didn't work in one or the other way so finally the present currency notes standards have to be made.
Secondly,the inflation cannot be controlled by simply changing the standard of the currency because you are making the gold standard which means that the value of the gold will now be equal to the present currency.And people will used gold in the same way as they are using the currency now.So, only way to stop the inflation is by taking proper steps by the government in reform of the people.
Debate Round No. 2
harrytruman

Pro

In today's current economy, which is by the way a product of a terrible economic system low middle class and a low minimum wage, in 1860 you could only pay in gold if you wanted to buy something, and 40 years of inflation only cost 1/6 the currencies value, what we lost in a couple hours in the government shut down of 2013, as opposed to 5/6 our currencies value without a gold standard, gold and silver are the only way for the people to have faith in the monetary system.
Karan_m

Con

Firstly,I would like to put the point that the inflation causes due to more money printing of the currency notes,increase in the demand compared to the supply,depreciation of the foreign exchange,etc.All this thing arise due to the expenses made by the government for the welfare of the country.

So, the comparison made by you between the inflation rates during the past and the present is not acceptable because there is a lot of development in the present compared to the past.In the fear of the inflation we cannot stop the development and revolution of the country.So the gold standards cannot be accepted just for this purpose.Many others factors has to taken into account which tells us or suggests us to have good economic steps rather than returning to the gold standards.
Debate Round No. 3
1 comment has been posted on this debate.
Posted by harrytruman 2 years ago
harrytruman
The gold standard would limit the amount of currency issued and make the currencies that are issued more valuable.
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