I was not advocating the irresponsible printing of money. I was just suggesting that the removal of the gold standard has significantly helped the economy. The only reason why the dollars has any value is because it is backed by a promise. You are depending on others to honor your dollar after you exchange your goods for it. If you sell me your car today for $5000 and tomorrow the economy collapses and the dollar is devalued, then you are out of luck. People just trust that this will not be the case. Take a look at Brazil a few years ago. Inflation was so bad that workers demanded that they were paid daily so they could spend their cash before it lost its power or they demanded that they were paid in forms other than cash.
The money that is made out of thin air helps the economy far more than it hurts it. The government can print money and us it for any expenditures they might have. Different companies receive this money as revenue and pass it on the their workers who pass some back to the government in the forms of taxes and spend the rest which in turn goes to the companies as revenue and back to the workers as wages in a cycle. Prior to the depression, the economy was based on the gold standard and the only time the federal budget went into a deficit was during times of war and after war the budget surpluses eliminated any deficits.
During and after the depression, the government assumed the role of trying to promote full employment while ignoring the effects of a budget deficit. As long as there is not an excess of money, inflation is unlikely to happen due to various controls in place such as the Fed raising the interest rate to combat inflation.
Inflation can also be beneficial to some. If you purchase a house with a fixed rate mortgage, inflation will normally cause the value of the dollar to gradually drop. Most employers outside of the cable industry will give periodic pay raises to keep up with inflation and rising prices. Your mortgage payment will stay the same but it will actually feel like you are paying less since you are paying with inflated dollars and earning more. The drop in value in the dollar and increases in price will also cause property values to increase so you are paying less for a home that is worth more.
Re: America is dead
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