A few thoughts on my week, hope for the future, the gold standard, and an update on private jets.
By Holly A. Bell
My Week
Professorhollybell.com had a record number of visitors Monday and Tuesday of this week, but considerably fewer comments than usual. I’m not sure what to make of this, but I’ll try not to take it personally. Perhaps people were forwarding the link to others under the subject “Can you believe this idiot!” and then having a good chuckle. Or maybe not.
Hope For The Future
This was the first week of classes at the university that employs me. You will be relieved to know that I still have hope for our future. I look out and see many bright and motivated students. We (like the generations before us) are quick to believe the next generation is hopeless, will never pull up their pants, are on drugs, and don’t know how to work or think critically. Relax. I’ve encountered several members of the next generation this week that are going to be just fine. Remember, as Charles J. Sykes said: “Be nice to nerds. Chances are you’ll end up working for one.” By the way, while this quote has been attributed to Bill Gates, it (and the entire speech Bill Gates gave) is from 50 Rules Kids Won’t Learn in School by Charles J. Sykes, but life isn’t fair. Now you know.
The Gold Standard
The University of Chicago’s IGM Forum asked some of the world’s leading economists if the US would have better price-stability and employment outcomes if we replaced our discretionary monetary policy regime with a gold standard. Weighted by confidence, 66% strongly believed it would not be improved by returning to the gold standard. Even those who disagreed did not do so strongly.
Among the reasons expressed by the economists that returning to a gold standard would be a bad idea:
1) Gold would eliminate discretionary monetary policy.
2) Gold is not a stable standard and is subject to significant relative price fluctuations exposing the US to significant risks.
3) There are more factors influencing the price of gold other than US inflation risk.
I strongly agree that returning to a gold standard is a bad idea. In addition to the listed reasons, we forget that under a gold standard the ability to grow your economy (nationally and globally) is limited by how quickly gold can be mined. This is not a true measure of economic potential. But, I’m interested in your thoughts.
An Update on Private Jets
For those of you who thought my post “Why We Might All Fly On Private Jets” was either on or off the mark, I draw your attention to the CBS New York story of 8 upper middle class friends who are renting a private jet to see the Giants play in the NFC Championship. It looks like people DO splurge on such things for a special occasion. Huzzah!
Have a great weekend everyone!
Photo courtesy of Stuart Miles