The gold standard is when a country has the same amount of gold stored away in storehouse as people have in dollar bills and coins. Before 1933, creditors made people pay their debts using gold, but in May 1933, everyone who had gold was required to turn it all in to the banks. On June 5, 1933, the United States Congress voted to take our country off the gold standard, and at that time 1 ounce of gold equalled $20.67. Going off the gold standard meant that more dollar bills and coins could be made than we have gold, and by 1934, 1 ounce of gold equalled $34. So instead of getting 1 once of gold for $20.67, you could only get a little more than half an ounce of gold for $20.67. Right now, 1 ounce of gold equals $1,420.56, so $20.67 would only buy .015 ounces of gold (a tiny speck of gold). Should we have stayed with the gold standard or not? How would you have voted? Let us know!
Voting The Gold Standard Out
