Patrick Bohan for Congress: Economy and Inflation Policy
Eliminate the federal reserve. Ever since the Federal Reserve was formed in 1913 the value of the dollar has been in a steady decline. Additionally, controlling government spending and the national debt will help to stabilize the dollar, stabilize consumer prices, and lower inflation.
The federal reserve should be replaced with the gold standard. The United States is in such a deep hole (debt) that converting the economy back to the gold standard would be painful. There are not enough precious metals to back our economy and debt without significantly scaling (raising) the price of metals. That said, the Federal Reserve has failed, and returning to the once proven gold standard may provide a better solution. Unlimited printing of worthless paper money is a disaster waiting to happen. It is interesting to point out that there are creative solutions to unique problems if the United States migrated back to the gold standard. For instance, gold back legal tender is an interesting solution that enables people to purchase lower priced items with currency that has value. A gold back is shaped like paper currency but is made with gold foil and gold paint whose worth fluctuates with the price of gold. A gold back is usually valued between 3 and 4 dollars. The bottom line, an economy that backs debt and its currency in circulation with something of equal value is much more stable. One thing is clear, the Constitution provides the federal government the power to coin money, not to print worthless paper money. It was not until the Knox v. Lee in 1871 that the Supreme Court held printing paper money was constitutional overruling cases such as Hepburn v. Griswold decided a few years earlier. The bottom line, it was never an open and closed case the federal government could issue paper currency.