President Nixon's Big Golden Mistake

Automatic TRANSCRIPT

Okay, so my $64,000 question is why did the Richard Nixon do it? They did it by mistake. They didn't mean to go off of it, but there was a mild recession. Nixon was coming up for reelection. They had this mistaken belief that they devalued the dollar. That would improve our trade balance. That would goose up the economy. And so they went off in August of 1971. They what they called close the gold window. Because of bogus economic thinking. Which dominated sadly, much of the economic profession. They like to think they can do things better than an impersonal force like gold. So they went off of it. They made a half baked attempt to go back on it, but no one was really willing to make the effort to do it. So it just sort of fell apart in the early 1970s. Ronald Reagan wanted to go back on the gold standard, but no one around him, except for the handful of exceptions, most of the economists said no. You can't do it. And he knew that if he didn't have the support of an intellectual support, it wouldn't happen. And it didn't happen.

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