Why America Lost Sound Money in 1913

About Arthur Laffer

Arthur Betz Laffer (; born August 14, 1940) is an American economist and author who first gained prominence during the Ronald Reagan administration as a member of Reagan's Economic Policy Advisory Board (1981–1989). Laffer is best known for the Laffer curve, an illustration of the hypothesis that there exists some tax rate between 0% and 100% that will result in maximum tax revenue for government. In certain circumstances, this would allow governments to cut taxes, and simultaneously increase re...

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A Rare Glimpse into the Past: [Arthur Laffer](/artist/arthur-laffer)'s Insights on Sound Money

In this 3-minute clip from 1989, renowned economist Arthur Laffer shares his expertise on why America lost sound money in 1913. As a member of President Ronald Reagan's Economic Policy Advisory Board and founder of Laffer Associates, Laffer's opinions carry significant weight in the world of economics.

Laffer's discussion with Michelle Makori, President & Editor-in-Chief of Miles Franklin Media, delves into the history of America's monetary system and how it has evolved over time. The expert's assertion that "unhinged paper currencies do not work" is a stark reminder of the importance of sound money in maintaining economic stability.

The year 1913 marks a pivotal moment in American financial history, as Laffer explains how the Federal Reserve was established during this period. This event had far-reaching consequences for the nation's monetary policy and paved the way for the widespread use of fiat currency. Laffer's critique of the Fed's actions serves as a warning about the dangers of unchecked government intervention in the economy.

Laffer's reputation as the "father" of the Laffer curve, which illustrates the relationship between tax rates and revenue, adds credibility to his analysis of America's monetary system. His work on the Laffer curve has had a lasting impact on economic theory, influencing policy decisions for decades.

The expert's assertion that sound money is essential for maintaining economic stability resonates with those who value fiscal responsibility and limited government intervention in the economy. As Laffer emphasizes, "unhinged paper currencies" can lead to inflation, currency devaluation, and ultimately, economic collapse.

This clip offers a unique opportunity for viewers to gain insight into the thoughts of a renowned economist on a critical topic in American financial history. Laffer's expertise provides context and understanding of the complexities surrounding sound money and its significance in maintaining economic stability.

For those interested in learning more about sound money and its implications, this clip serves as an excellent starting point. Miles Franklin Media's commitment to providing unfiltered financial and economic news and insights makes their platform a valuable resource for individuals seeking credible information on these topics.

As the world grapples with the consequences of inflation, currency devaluation, and economic uncertainty, Laffer's words from 1989 remain as relevant today as they were then. His warning about the dangers of "unhinged paper currencies" serves as a reminder of the importance of sound money in maintaining economic stability.

The expert's assertion that America lost sound money in 1913 highlights the need for a more nuanced understanding of monetary policy and its impact on the economy. This clip offers a rare glimpse into the past, providing valuable context for those seeking to navigate the complexities of modern finance.

As Laffer so aptly puts it, "unhinged paper currencies do not work." His words serve as a reminder of the importance of sound money in maintaining economic stability and provide a timely warning about the dangers of unchecked government intervention in the economy.

Editorial context researched and compiled from verified sources.