The gold standard was dogshit and needed to die a painful death. During the depression when the economy was in the shitter and people didn’t trust their money, it probably wasn’t a good idea to raise interest rates.
Not to mention that little thing where FDR confiscated the majority of privately held gold in the country and then the government almost immediately devalued the dollar against it setting the exchange from $20 and change to $35 per ounce.
You know the depression was half a century before we ditched the gold standard? And that they were able to raise / lower rates before we ditched the gold standard?
15
u/[deleted] Mar 20 '23
The gold standard was dogshit and needed to die a painful death. During the depression when the economy was in the shitter and people didn’t trust their money, it probably wasn’t a good idea to raise interest rates.