Gold and the Wicked Magicians

Why is there such hostility toward a return to a gold standard? After all, the U.S. prospered mightily by tying the dollar to gold from 1791 to 1971. (The exception was during the Civil War, but the link was resumed in the 1870s.) Other factors were at work, of course, but the sound dollar was critical to our phenomenal success.
Amsterdam became a capital powerhouse in the 1600s and tiny Holland, a global empire. This was, in no small part, because its currency was firmly tied to gold. Ditto Britain in the 18th and 19th centuries with the pound. Germany and Japan quickly and miraculously rose from the rubble of World War II when they firmly fixed their currencies to the gold-backed dollar.
So what gives?

Current Issue

There are two powerful forces opposed to this sensible step: the inherent rapaciousness of Big Government and the conceit of economists who believe that economies can be guided, like steering an automobile. Both forces share a visceral dislike of the gold standard.
Linking the value of money to gold removes a huge source of Big Government’s power. No longer can government confiscate wealth by stealth by devaluing your money. Economists hate the gold standard because they think they’re being deprived of one of their magic wands to shape the economy.

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