Kook of the Week: Arizona Legislators
Gold and silver are shiny, and in primitive days (read: pre-1971), presumably due to their shininess, humans used to accept them in exchange for goods and services. This was just as silly as the use of wampum by Native Americans.
Since then, we have advanced our understanding of money and advanced the concepts of central banking and economic theory. In support of these advancements, the government slowly but surely removed the ridiculous backing of Federal Reserve Notes with shiny metals like gold and silver, fully removing the United States from the gold standard. This has worked extremely well:
Now the state of Arizona wants to ride roughshod over the federal government and once again allow businesses to exchange goods and services for shiny things. This week, their state legislature approved shiny things as legal tender in the state. They now wait for the governor’s signature, and the deed is done.
Why would anyone prefer to use shiny metals that have no intrinsic value and can be easily pulled out of the ground over Federal Reserve Notes backed by the “full faith and credit of the United States government”?
The answer is that they won’t, and luckily for businesses in Arizona, this law does not mandate that businesses must accept shiny things as money. The uselessness of shiny things as mediums of exchange will thus be borne out as nobody adopts them.
But for trying to trample on the Federal Reserve and the banks they work for, and for unpatriotically calling into question the United States Dollar, Arizona legislators have earned the dishonor of Wisdom Hunt’s Kook of the Week.