by Steve Forbes and Elizabeth Ames
Steve Forbes has a way of
polarizing people, and although I’m sure he’s going to continue doing that with his
latest book, Money, co-written with longtime collaborator Elizabeth Ames, I'm still a big fan of Mr. Forbes. This book did not disappoint me. Mr.
Forbes discusses what money is, what money is used for, what it
should be used for, and why it causes the many issues (I hesitate to say
“problems”) that he thinks it does. Sure, there are more than a few
political vents and rants in this slim, easy to read book, but for the most part he keeps to the book's main tenet: fiat money adversely impacts the economic health of any country
who uses it. And the solution? The United States should return to the gold
standard, along with the rest of the world, and then the issues
related to fiat money go away. That’s the long and short of it.
I must admit, though, that I'm not sure things were so much better when we were on the gold standard. It’s not like there wasn't inflation. Yes
things are more expensive now than they were in, say, 1955, but in 1955, the
average American only made $5000 a year or so. I could look up the current
average salary, but we know it’s a lot higher than $5K. I think Mr. Forbes is
on the right track in thinking that the gold standard would solve some of the
money issues America faces right now. At the least, it would keep the Fed from
printing money at leisure to advance whatever agenda it sees fit at any given
moment. But my own feeling is the issues are more complex than just “The Fed shouldn't do this,
Congress should do that, and money should be able to be exchange for gold”.
Thankfully, Mr. Forbes recognizes that his “simple” suggestion of a return to
the gold standard is but a remote possibility at best, so in the final chapter,
he provides the reader with a “the best offense is a good defense” strategy to
protect one’s own money from the steady devaluation caused by not being on the
gold standard. The suggestions are tame (buy index funds, own some gold, stay
in the market for the long term) but at least they are realistic. The inclusion of an investment strategy is a bit gratuitous, but I
think it is more likely to help rather than hinder the majority of
this book’s readers.
Money for the most part is sensible and sober, and Mr.
Forbes has no shortage of clever ideas and strong opinions. Some readers
may balk at some of his bolder political statements and finger pointing, but
given a high profile author like Mr. Forbes, it’s easy enough to let him have
his say and turn the page. In any event, I don’t think he’s going to succeed in
resolving anything with this book, and I’m sure most politicians will pointedly
ignore it. For me, it didn't make me any bigger of a fan, but it didn't disappoint me either. This was an interesting, thought provoking book, and I'm glad I read it.
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