Given that we have had Republicans talking about gold for decades, including Ronald Reagan and his Gold Commission, and it was a Republican, Richard Nixon, who destroyed the remnants of the American gold standard, somehow I don't think a guy who has read Atlas Shrugged a few times is going to end the paper money standard we have had for a while. However, all of us know that Goldstein is capable of anything, and no one depends more upon Goldstein that Krugman.
Yes, Krugman goes over the Usual Stuff on how Republicans always are going to completely end the Welfare State, even though Republicans in power never have done that. Well, Ryan did read some works by Ayn Rand, didn't he? What other proof do you need? Krugman writes:
Well, it’s right there in that 2005 speech to the Atlas Society, in which he declared that he always goes back to “Francisco d’Anconia’s speech on money” when thinking about monetary policy. Who? Never mind. That speech (which clocks in at a mere 23 paragraphs) is a case of hard-money obsession gone ballistic. Not only does the character in question, a Galt sidekick, call for a return to the gold standard, he denounces the notion of paper money and demands a return to gold coins.
But then Krugman gets into the meat of this column: Ryan will impose a gold standard, and the economy will collapse. This falls into the "Yeah, Right" Category. First, Krugman has been claiming that inflation will lead us into recovery, and he also has claimed that inflation is a wonderful way to transfer money from the wealthy to the poor. (Please tell that to the poor and lower-income people who have been spending more and more money at the gas pump and the grocery store that inflation is their savior.)
Second, Krugman claims that the inflation rate is so low that we really don't need to worry about money, anyway. So, what is it? Is inflation bad or good? If the rate is low, why doesn't he come out and claim that we need much more monetary debasement?