Q&A with Steve Forbes about his upcoming book, MONEY: How The Destruction Of The Dollar Threatens The Global Economy And What We Can Do About It.
... What don’t people get about money?
Money is not wealth. Printing more of it doesn’t make society richer. You might get some short-term activity. But you end up with wealth destruction, not creation. For centuries our leaders have mistaken money for wealth. But it is an instrument of measurement like a scale, a ruler or a clock. Instead of measuring time or weight, it measures value.
How has this misunderstanding hurt people and the economy?
It resulted in the end of a gold monetary standard and the destruction of the dollar as a reliable measure of value. Had dollar remained stable and linked to gold, incomes today would be 50 percent higher than they are. We would have avoided the countless crises and market fluctuations that have been the result of unstable money–from the emerging countries crisis of the past year to the panic and financial crisis and many others before that.