Economics Questions

Re: Competing currencies questions

Bogart — Fri, 29 Apr 2011 15:31:57 GMT

The government would be able to offer its currecy in the midst of other alternatives. Now understand that government currency would be either ignored immediately or have to be backed by gold or silver to get accepted.

Good question, we could have 3 million more workers in the division of labor and all the economic growth that would entail.

Maybe, that depends on what the government does with its money. Probably the government would have start redeeming money for precious metals like it did from 1789 to 1860 then from 1865 to 1933. The Bretton Woods would not be possible with competing currencies.

Rothbard did not support government period. Government run currency backed by gold is simply a superior alternative to one backed by nothing.

Re: Competing currencies questions

John James — Fri, 29 Apr 2011 15:31:48 GMT

Government could print whatever it wants. The premise behind "competing currencies" is that no one is forced to accept any of them. Two individuals could contract that a payment be made in gold or silver or milk or chickens...and if the party did not pay accordingly, they could be sued. In today's United States, this would not happen. A person must accept Federal Reserve notes as payment. If a person wishes to be paid in gold, and gets paid in FRNs instead, he has no recourse.

The fact that the government would demand taxes be paid in any one form would be against the principle of competing currencies. (Unless of course taxes were voluntary.)

Competing currencies questions

No2statism — Fri, 29 Apr 2011 15:00:07 GMT

Under a competing currency system, does the government still print money? Why would anyone work for the government if the government printed money and there were competing currencies? Wouldn't everyone just pay all of their taxes in the paper money and pay private debts in gold/silver and then the people who got paid in paper would be out of luck?

If government has to exist, I think that it should accept only gold and silver in payment of debts, but it should not regulate their value for private use (it shouldn't coin money). Rothbard supported that, right?