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Since 1971, the price of the dollar has fallen from 1/35 of an ounce of gold to 1/1350 of an ounce of gold, a depreciation of more than 97%.
That’s not enough for Sen. Elizabeth Warren. She has a “Radical Plan to Fix the Dollar.” (See nyti.ms/2WM1F2u) Her plan is to depreciate the dollar more than 25% against major foreign currencies, above all the Chinese Yuan. (Further depreciation against gold is implicit.)
The alleged advantage of this is that the dollar will then be cheaper to foreign buyers (just as it’s already 97.5% cheaper to owners of gold). In response, they’ll supposedly buy more of our goods and Americans will have the work to do of producing those goods.
Sen. Warren is apparently of the school of “thought” that believes that a business can grow rich by giving money to its customers, on the condition that they spend that money in buying from it.
The underlying idea here is that the fundamental problem of economic life is producing consumption rather than producing goods. For a detailed critique, see my essay “Production Versus Consumption,” 99¢ at amzn.to/2IRbtOW. See also my Capitalism: A Treatise on Economics.
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