There was a time not so long ago when the value of an ounce of gold cost $20.67. That was true not just in one moment or one year. It was true in the 1880s, 1890s, 1900s, 1920s... This was the gold standard. A person could take $20.67 to a federal bank and receive an ounce of gold in return.
This system worked really well... for a while. But by the 1890s the constant deflation caused by the increasing value of gold meant that people with loans had to work harder and harder to pay them back. The value of gold and the value of goods had an inverse relationship, like a seesaw. One side went up and the other went down.
This is the topic William Jennings Bryan chose to discuss at the 1896 Democratic Convention. And it was that speech that won him the presidential nomination that year. Imagine that! Someone so passionate about inflating the cost of goods that they are chosen to be president! His bimetallism (he wanted to add silver into the mix to devalue the specie) stance came out of his social gospel leanings and his Christian faith. This was a high point for the social gospel. As the evangelical world was about to turn to the darker premillennialist view, Bryan made an impassioned plea that we could, in fact, make this world a better place.
My guest for this episode is the amazing Jacob Goldstein. He's the author of the book “Money: the True Story of a Made-Up Thing”. He's also a former co-host of the Planet Money podcast and now hosts "What's Your Problem?", a show where he interviews guests about the issues in their industries. You'll also hear from Michael Kazin, professor of history from Georgetown and author of "A Godly Hero".
Helpful Links
Discussion Questions
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Have you ever gotten so excited at a political speech that you would gladly carry the politician around the room?
- What is money?
- Why do some of us want our money to be backed by something else? Why gold?
- Is there something inherent in gold that you think makes it forever valuable?
- Do politicians and government officials have some responsibility to consider how monetary policy impacts those in the lower classes? What does that look like?
- How has your life been impacted by monetary policy?
- How do you feel about things like the FDIC?
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