Money is a good or service, just like anything else. It's function is to serve as a medium of exchange so you don't have to trade your whickets (or whatever you produce) directly for food, housing, ect.
Currently there is a monopoly on money. Only the fed can produce money. Since they don't have anyone competing with them nothing is really stoping them from putting out a low quality product (which they are doing).
What Ron Paul is suggesting is that we get rid of the monopoly. If people want to use Federal Reserve Notes, like they are forced to now, they can. But if they want to use gold or silver, like the constitution says, you can. Right now there are legal tender laws and capital gains taxes which penalize gold and silver. That way if the fed debases the currency, people have the option to choose to use something else. If people decide they want money that holds value, so that they can put it in their pocket and in a year it won't be worth 8% or 9% less when they spend it, they have that option. Right now they don't. Right now they are forced to lose purchasing power too the Fed and its benificiaries (wall st/politicians whom are debasing the currency)
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