The True Gold Standard (Second Edition)
Pullquote: "'The majority of voters across nearly all demographic groups favor the gold standard....' A majority of African Americans, most of them enthusiastically, support the gold standard. A majority of Union members... support the gold standard too."
Image courtesy of RasmussenReports.com
Superpollster Scott Rasmussen has pulled the pin and rolled one of his patented hand grenades under the chair of the Political Class. Rasmussen’s “October Surprise” is contained in a recent poll showing 44% of likely voters favor returning to the gold standard, 28% opposed. That intensifies. If the public knew that it would “dramatically reduce the powers of bankers and the political class to steer the economy” support goes up to 57%. Opposition drops to 19%.
And there’s more. Rasmussen’s results show that 79% of Tea Party voters (and 69% of simply self-described Republicans) would favor such an elitism-constraining gold standard. ...
Rasmussen's numbers strongly suggest gold is an electoral jet stream.
Whoever digs down into the crosstabs will discover another electorally important fact. The gold standard, potentially key to energizing caucus and primary voters, is an asset for the general. This isn’t a desperate primary season expedient which can return to haunt. Rasmussen: “The majority of voters across nearly all demographic groups favor the gold standard if it would dramatically reduce the power of central bankers and political leaders over the economy.” A majority of African Americans, most of them enthusiastically, support the gold standard. A majority of Union members (including this columnist, a member of the AFL-CIO) support the gold standard too.
Gold splits the Democrats’ base There are two major elements of the left. One is made up of elitist, doctrinaire, souls such as Paul Krugman. These are almost all white males of the privileged class: its patriarchy. These, the left’snomenklatura, almost all ridicule gold. They also, not surprisingly, are a minuscule minority…even of the left.
The nomenklatura have the prestigious platforms –- media, academic perches, money, prestige awards. But they don’t have the votes. Most of the left is made up of humanitarian populists, such as organized labor and ethnics who comprise the “social democratic” left. They are far more concerned about jobs, opportunity, and policies of “rising tide” prosperity than with arcane (and dubious) neo-Keynesian dogma.
These — as the Occupy movement is telling us loudly with its many calls for the gold standard — and as Rasmussen now has quantified in his October Surprise — strongly tend to favor gold. The ethnic and labor left leadership is more attuned to the mood of their own, pro-gold, rank and file than are the patrician nomenklatura.
Oct 20, 2014
Lawrence H. White is an economics professor at George Mason University who teaches graduate level monetary theory and policy. Lawrence White As described by the Wikipedia, "White earned his BA at Harvard University (1977) and PhD at the University of California at Los Angeles (1982). Before his current role at George Mason...
The Federal Reserve System's James Narron and David Skeie, career officials with the Federal Reserve System, are two eminent historically erudite figures. Writing in the New York Federal Reserve Bank's online publication, Liberty Street Economics, they recently provided a continuation of their valuable historical "revue," Crisis Chronicles: The Collapse of the...
Jul 23, 2014
An article headline in Saturday’s Wall Street Journalread “Rate Talk Heats Up Within The Fed.” As Journalreporters Jon Hilsenrath and Michael Derby...
Oct 01, 1977
Key Monetary Writings
Volume 50, 1977 John Maynard Keynes and his disciples buried the gold standard, we might say, in the tomb of the...
Why the Gold Standard?