Claire Fan - Week 12: The Gold Standard
Looks crunchy. How do we decide what has value? Ever since humanity discovered gold thousands of years ago, it’s been coveted as a metal that has such immense value so as to spark countless wars. Stories about gold cities—El Dorado, Cibola—and movies subsequently made that revolved around the shining metal. The U.S. used to have something called the gold standard decades ago. Originally, the dollar could be traded in for gold. The Bretton Woods system, as it would later be called, anchored the American dollar in tangible gold. It was abolished in 1971 by the 37th president, Richard Nixon, though it did not lose its value even then. The power of gold is possibly best demonstrated in times of economic depression. It is globally recognized as a sign of wealth, and tends to have the highest value in times of economic downturn. But why do we even value gold so much? It’s nothing more than a shiny rock. What differentiates gold from a geode, for example? It’s hard to answer those questi...