JFK would be delayed by bitcoin

Miks policy designers, Kennedy and Dillon.

Bettmann Archive

Why did Bitcoin come? The computer scientific revolution gave us the possibility of a blockade. All types of neat things can be done with Block, including trading unique pieces of network property that keep their nature after the trade currency in the word. Technological development gave us Bitcoin, in important sense.

As important sense, I have no gold standard gave us Bitcoin. In 1971., the United States, which have only, defined the dollar as a unit of precious metals, gold or silver, completed this Convention. President Richard Nikon said he was suspended, because it was good as he turned out, $ 35 per ounce of gold, the price that the United States was guaranteed since 1934. years (before that was 19-20 dollars). The economy and the public delayed this move. How do we know? Look before and after.

Costar prosperity, the legendary successful ERA of the American economy due to generation after the Second World War, bloomed while the United States was in a gold standard. Stagflation, ugly tenses The combinations of a constant recession and huge prices of consumers occurred in 1971. America became the largest economy in centuries in Centuri-Prosperity, but the economy had its moments, but the economy had its moments.

An exception in American economic history to comprehensive success, before 1971. years, they were when taxes suddenly become huge, as in great depression.

Details of American Monetary History from the prospect of Bitcoin is the topic of our new book Free Money: Bitcoin and American Monetary Traditionaln. One set of detail refers to the 1960s. As the decades are underway, President John F. Kennedy clearly lets not to deviate one bit from the dollar redemption at the request for $ 35 per ounce of gold.

The economy responded with mega-growth.

A recent book about Kennedy’s extraordinary Treasury Secretary, C. Douglas Dilion returns us to these golden old days. It is especially thankful to see Richard Aldous’ Dilion Era (2023) Supports Theses Larry Kudlov and I have made progress JFK and Reagan Revolution (2016). Aldous shows that Dillon was in charge of Gold and Tax Policy under JFK that the policy was to keep the gold standard and reduce tax rates. As the tax rates were cut, the incentive to make and hold dollars has increased, reduces demand for gold and leaving 35 dollars in dollars not less than what the market preferred. In economies where the obligation of marginal dollars are approaching more than tax, preference for dollars over gold grows. Reducing tax rates solidify the gold standard.

Lower tax rates, sound classic money – this was a mixture of JFK police. It happened crazy economic boom. As he went, Kennedy died, accumulating, and everyone started coming everything wrong.

First, Dillon’s competitors in the White House, academic economists headed by Valter Heller on the Council of Economic Advisors, became a chat, because Dillon ran into other pursuits. These academics said that the Council for the JFK tax should have been temporary. Heller, Paul Samuelson, James Tobin and the company were opposed to the Dilionian crossed tax rates, finding marginal reductions insufficient on Keineesian basics. The cross-sections of marginal taxes are more valuable from ensuring that those with the greatest “inclination” to consume “(lower earned) are becoming more money. It is better, the specialty of non-marginal taxes, who were not those who were Dillon and JFK.

Second, President Johnson raised marginal tax rates, all, for ten percent. The golden market shot like a rocket. High tax rates back in the United States again? I will take gold for my dollars now.

And then the third, Nikon, who lost in Kennedia during 1960. year, until the early 1970s, as the President, was not about to be a snake and imitate the man who tortured him. It will not call it on the JFK mixture of politics, namely, preserving the gold standard by reducing tax rates. In 1969, Nikon put an alternative minimum tax, increased capital gain for ten points and retained the LBJ’s income tax surcharge. More hitting the door of the golden markets. Until 1971. years, demand for drying dollars and gold is privately increasing, Nikon decided. He graduated from the Golden Standard.

The problem is that the public hates fiat money. Experts think Fiat money is ripe and serious and gold standard, weird and atastic. Experts prevailed, some time. They could tilt the reality that the public hates Fiat Money and adores the Golden Standard.

During the 1980s and 1990s, we had the possibility of accommodation when huge tax crows sent private gold tipped and stable at low levels, approximately ten times 35 dollars, or $ 350 per ounce for a better part of the two decades. Still, the reform did not happen. The dollar remained a fiat. And then we became undeclared cross-section of marginal taxes in 2000. The gold took off like a rocket. UP ten times $ 35 but ten times $ 350. One hundred times $ 35.

So, Bitcoin had to be performed in 2009. year to start the process of establishing a credible, competitive alternative for money Fiat. It could all be avoided that we got stuck gold, which would be enough easy to get stuck with a marginal tax cut. This was the correct legacy of the JFK, including which would ever have been expanded by mass prosperity, which never came to pass.