Con

Returning to a gold standard could harm national security by restricting the country’s ability to finance national defense.

A gold standard would prevent the sometimes necessary quick expansion of currency to finance war buildup. In order to help finance the Civil War, President Lincoln authorized the printing of $450 million in fiat currency known as “greenbacks.” [63]

During World War I, the United States and many European countries stopped using a gold standard to finance war efforts by temporarily printing more money [131] [132]

As Kimberly Amadeo, President of World Money Watch, noted, “The Great War proved to be the first nail in the coffin for the international gold standard… [as it] was causing deflation and unemployment to run rampant.” [132]

The United States financed its involvement in World War II in large part by having the Federal Reserve print money, selling war bonds, and running large deficits. [64]

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