We Desperately Need Sound Money, Not Tariffs
en
January 31, 2025
TLDR: President-elect Donald Trump plans to raise tariffs upon taking office. The podcast argues that free exchange and sound money should instead be prioritized for economic growth.

In a recent podcast episode, We Desperately Need Sound Money, Not Tariffs, George Fort Smith delves into President-elect Donald Trump's tariff proposals and argues the case for sound money over government-imposed trade barriers. The discussion presents key economic concepts and historical lessons highlighting the importance of a free market and sound monetary policy.
The Case Against Tariffs
- Trump's Tariff Agenda: President-elect Trump has expressed intentions to implement significant tariff increases, including up to 60% on imports from China and 20% on other goods. His enthusiasm for tariffs is well-known, often favoring protectionist policies over open trade.
- Economic Consequences: Tariffs may provide short-term benefits to specific industries, but their broader impact can lead to reduced consumer spending, potentially harming domestic employment and market competitiveness.
- "Building it here, or else" reflects a heavy-handed approach that risks stifling open competition.
- Government Intervention: Tariffs empower the government to choose market winners and losers, ultimately leading to scarcity and higher prices for the consumer. This contradicts the principles of a free market, where consumer choice drives economic success.
Historical Lessons on Tariffs
- Tariffs and Conflict: Historical evidence suggests that high tariffs have contributed to societal tensions. The moral tariff of 1861 led to significant unrest, further exacerbating divisions that contributed to the Civil War.
- Economic Growth Post-Tariffs: Notable periods in American history, such as from 1879 to 1889, demonstrated that productivity and real wages can rise significantly in the absence of tariffs and government intervention. During this era, the economy thrived on a resumption of the gold standard, indicating a correlation between sound money and economic stability.
The Importance of Sound Money
- Role of Sound Money: A robust monetary system is crucial for economic growth. The podcast highlights the necessity of sound money—defined as a stable currency system that resists inflation and government manipulation.
- Gold as Sound Money: Sound money, particularly in the form of gold, prevents the sort of inflationary policies that erode purchasing power. As pointed out, central banks hoard gold, recognizing its stability and value.
- Principles of Sound Money: Drawing from the insights of economic thinkers like Mises and Friedman, the podcast underscores two essential aspects of sound money:
- Affirmative Aspect: It supports market choices as the common medium of exchange.
- Negative Aspect: It limits government interference in currency systems.
Practical Recommendations
- Dismantling the Federal Reserve: The podcast fervently advocates for the elimination of the Federal Reserve System, which is described as a "legalized counterfeiting racket." The message is clear: allow the market to dictate monetary standards rather than bureaucratic authorities.
- Encouraging Capital Formation: For sound money principles to take root and prosper, an increase in capital formation is essential. This not only cushions the economy against inflation but promotes sustainable growth through savings and investment.
Conclusion
The podcast episode makes a compelling case for prioritizing sound money over tariffs. By advocating for a more free-market approach and limiting government intervention in monetary policy, it presents a blueprint for economic recovery and sustainable growth. Key takeaways include:
- Embrace free markets and sound money principles to foster economic stability.
- Be wary of government-imposed tariffs and regulations that disrupt trade.
- Advocate for a reevaluation of current monetary systems, promoting transparency and market-driven solutions.
This discussion serves as a vital reminder of the historical lessons learned from tariffs and the ongoing need for sound monetary policy in modern economic architecture.
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