why-tax-moneyBy Jon Decker

Inflation has returned to the forefront of American consumerā€™s minds. After witnessing our fiat dollar depreciate in value by roughly 7.5% over the last four years, there is increasing public awareness of how The Federal Reserveā€™s weak dollar policies have harmed our economy.

After the consistent failures of several monetary stimulus measures, such as the arbitrary lowering of interest rates and the quantitative easing attempts, a growing consensus has emerged that itā€™s time to restore discipline to our money supply. While Federal monetary reform remains challenging against a stubborn administration which refuses to acknowledge the damage caused by their loose dollar policies; the good news is states have a strong countermeasure at their disposal through legal tender laws.

In 2011, Utah enacted ā€œThe Sound Money and Legal Tender Actā€, which gives Utah consumers the option to use gold and silver coins as money. This legislation reaffirms the states right to under Article 1, Section 10 of the Constitution, which reads ā€œno state shall make anything but gold and silver coins a tender in payment of debts.ā€ In order to promote the use of gold and silver as currency, Utah has two available depositories so customers have electronic access to their inflation-proof asset. Since the legislation was signed into law, gold holdings are estimated to have increased by 50%.

There are numerous benefits for states to follow the Utah model and enact legal tender legislation. While the dollar continues to depreciate in value, gold provides individuals with a protected asset that is remarkably stable in value. When Utah consumers obtain precious metals to save or use as legal tender, they can feel the confidence of knowing their money will retain its value in years to come. A recent post election poll discovered that inflation was only 1 point behind unemployment as ā€œthe greatest economic concernā€ for Americans. For these reasons, legal tender laws are the best state solution for restoring market confidence.

Jon Decker is an intern with American Principles Project and a student at Roger Williams College in Rhode Island.

You May Also Like

The Inventory Tax: Everybody Loses

From JustAnswer.com: I have found that at least 3 states of the…

Obama Funds North Carolina Planned Parenthood Affiliates, Usurps Legislature

Continuing the trend of ignoring state legislatures who decide to defund Planned…

Who Is the Most (and Least) Popular Governor?

Morning Consult’s 2016 list of Governor’s approval rating found Governor Dennis Daugaard (R-South Dakota) is the nation’s most popular governor.

SBA List Launches National Pro-Life Women’s Caucus

SBA List announced the creation of a National Pro-Life Womenā€™s Caucus to recruit and organize pro-life women in state legislatures and statewide offices.