But somewhere, in a dark and anxious corner of our minds, we know the truth: hard work and savings are needed to create and sustain prosperity. Constantly going into debt to spend more money than you actually have while closing down productive industries and shipping the work overseas – living like parasites on the savings and labor of other nations – is a sure-fire way to turn a prosperous nation into a poor one. Printing mountains of money from thin air doesn't work either, since each new dollar-from-nothing reduces the value of every existing dollar – exactly why counterfeiting is illegal. For proof, Americans need only look at their own currency, which used to be gold and silver (as the Constitution still requires*), with a fixed rate of roughly $20 per ounce of gold. As this is written, it takes 50 times more dollars to buy an ounce of gold, at $1,000 per ounce. Imagine how much new money was created (and spent or given away by the government – instead of being used by the people for what they might have wanted) to debase the dollar to such an extent, rendering each dollar now almost worthless.
It is worth saying again: Print more dollars, and each dollar loses value.
Glen Allport is concerned about the Fed's lack of respect for the dollar ($) and explains why you should be also.
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