Economics, Character, and Gold Standard

Economics, Gold Standard, and National Character

Dinner Topics for Tuesday

“It is ordained in the eternal constitution of things, that men of intemperate minds cannot be free.” ~ Edumund Burke 

 Note: As of 2009, "In God We Trust" is still on the new dollar coins, but not on the front. Only on the back. It seems to be a sign of the times--a slippery slope? A reflection of our national character? We ought to keep an eye on the minters. Maybe next time it will be gone altogether. ~ C.D.

“It is ordained in the eternal constitution of things, that men of intemperate minds cannot be free.” These words by Edmund Burke have been the unspoken standard in our civilization since America was founded. By standard I mean a definite rule or principle by which things are measured. Gold or silver standard simply means that paper money is backed by a precious metal of intrinsic value.

Once there was a time when the standard of currency was measured by gold or sterling silver. The pound sterling, which is the name of Great Britain’s currency, comes from its early use of the silver standard. Sterling silver is defined as having a fixed standard of purity or conforming to the highest standard.

Gold Standard

Throughout the nineteenth century, America and Europe experimented back and forth with gold and silver. Seeking more monetary stability, the United States, along with many other nations, accepted the gold standard in 1873. Not long afterward, Silver Certificates were also issued, which could be redeemed in silver dollars and bullion (bulk metal). In 1933 the US discontinued the gold standard and maintained Silver Certificates, which continued until the death of President Kennedy in 1963.  In 1968 President Nixon ended both the gold and silver standard.

The gold standard prevented governments from printing too much paper money, and causing inflation (over-priced goods and services due to too much money in circulation). Governments were also limited in flexibility to create monetary policy and stabilize financial shocks. However, financial shocks are often caused by the very monetary policies that governments like to create. The free market, when left free of interference, will correct itself from time to time. The impact of these corrections can be proportional to the degree of fiscal responsibility exercised by a nation’s citizens and government. Those nations with robust economies tend to keep taxes low and minimize interference with the free market.

Today most nations use fiat money, which is money that has no intrinsic value, and is used only as a medium of exchange.  Our only standard has been the confidence of the world that the US will honor its debts. Our monetary policy is based on our good character—ability to keep promises—to pay our debts. How are we doing?

Without a standard of gold or silver, good character without greed is the only thing that keeps our government from debauching your money by paying debts with printed money. We presently have many elected officials who are now devoted to restoring fiscal responsibility to our monetary policy. It will take a long time to undo the damage of recent years.

To protect long term investments against inflation, you may look into savings of some kind. IRAs and Certificates of Deposit currently yield 3-5 percent, if your bank is giving you a “good deal.” Banks are now investing more in gold, which can yield ten times that much. Some financial institutions lend money to irresponsible people who cannot pay their loans, but reward the frugal with an insulting three pennies on the dollar of their savings.

Character

Some individuals use tax money to support immorality; some huge corporations take tax money that they don’t need. Other multi-million dollar businesses run their production lines around the clock, every day of the year, endangering the safety of their employees for lack of sufficient rest. In a past era, the only businesses which never closed were hospitals and fire departments. Now everyone stays open all the time. Why? Greed. They lose money if they close one day a week so their workers can be with their families.

The government is a product of the people; its character is representative of the national character. In the United States, the government is supposed to be accountable to the people. The people used to be accountable to God.

The silver standard is no longer with us. Nevertheless, “In God We Trust” is still engraved upon our currency. In the modern era, even an age of relativism, the quest for sterling character still begins at home. The true individual worth built in the family circle ultimately influences entire nations.

Sterling character is not measured in money. At the end of the day, it is not what we acquire that matters, but what we become.

Copyright © 2011 by Christine Davidson

Bible Study: Moral Example

 Lead others  by Moral Example and Setting the Standard High

 Dinner Topics for Monday

By Ann Dibb

Heavenly Father does not want us to look to the world and follow its ever-changing trends. He wants us to look to Him and follow His unchanging guidance. He wants us to live the gospel and lead others to it by setting the standard high.

The scriptures provide many great examples to illustrate this idea. In the book of Judges in the Old Testament, we learn about Samson. Samson was born with great potential. His mother was promised, “He shall begin to deliver Israel out of the hand of the Philistines.”⁹ But as Samson grew, he looked more to the world’s temptations than to God’s direction. He made choices because they “pleaseth [him] well”¹⁰ rather than because those choices were right. Repeatedly, the scriptures use the phrase “and he went down”¹¹ as they tell of Samson’s journeys, actions, and choices. Instead of arising and shining forth to fulfill his great potential, Samson was overcome by the world, lost his God-given power, and died a tragic, early death.

On the other hand, the scriptures provide the example of Daniel. Daniel was also born with great potential. In the book of Daniel, chapter 6, we read, “Daniel was preferred above the presidents and princes, because an excellent spirit was in him.”¹² When worldly challenges came to Daniel, he didn’t look down at the world—he arose and looked to heaven. Instead of following the king’s worldly decree that no one should pray to anyone but the king for 30 days, Daniel “went into his house; and his windows being open in his chamber toward Jerusalem, he kneeled upon his knees three times a day, and prayed, and gave thanks before his God, as he did aforetime.”¹³

Daniel was not afraid to arise and shine forth in following God’s commandments. Although he spent an uncomfortable night in the lions’ den for standing for what was right, he was protected and blessed for his obedience. When King Darius removed Daniel from the lions’ den the next morning, he made a decree that everyone should fear Daniel’s God and follow Daniel’s example of faithfulness. Truly, Daniel shows us what it means to be a standard for the nations and never lower our standards in the face of worldly temptations.

Arise and Shine Forth

I have been blessed to hear many modern-day examples of youth, just like you, who are not afraid to arise and shine forth and allow their light to be a standard among their peers. Joanna was one of only three members of the Church in her high school and the only young woman in her ward. She committed to herself and the Lord that she would never use bad language. When she was paired with a young man for a school project who had not made the same commitment, she did not lower her standards. She asked him to respect and honor her values. Over time, with many gentle and some not-so-gentle reminders, her friend formed new habits and used cleaner language. Many people noticed the difference, including his father, who thanked Joanna for being a good influence in his son’s life.¹⁴

On a recent assignment in the Philippines, I met Karen, who shared an experience she had as a Laurel while studying for a bachelor’s degree in hotel and restaurant management. A teacher required that every student learn to make and taste the variety of drinks that would be served in their restaurants. Some of the drinks contained alcohol, and Karen knew it was against the Lord’s commandments for her to taste them. In the face of serious consequences, Karen found courage to arise and shine forth, and she did not partake of the drinks.

Karen explained: “My teacher approached me and asked me why I was not drinking. He said, ‘Miss Karen, how will you know the flavor and pass this important subject if you do not at least taste the drinks?’ I told him that I am a member of The Church of Jesus Christ of Latter-day Saints, and as members, we do not drink things that are harmful to us. Whatever he expected of me, even if it meant receiving a failing grade, I would understand, but I would not fail to live my personal standards.”

Weeks passed, and nothing more was said about that day. At the end of the semester, Karen knew her final grade would reflect her refusal to taste the drinks. She hesitated to look at her grade, but when she did, she discovered that she had received the highest grade in the class.

She said: “I learned through this experience that God … will surely bless us when we follow Him. I also know that even if I had received a failing grade, I would not regret what I had done. I know that I will never fail in the Lord’s sight when I choose to do what I know to be the right thing.”¹⁵