While Herman Cain was a Republican candidate for President he made headlines for arguing with Congressman Ron Paul over monetary policy and the Federal Reserve. Herman Cain had worked for the Federal Reserve from 1992 to 1996, a fact that made many conservatives nervous. Although Herman Cain dropped out of the Republican presidential race in Decemberamidst allegations of sexual impropriety, on Tuesday Herman Cain released his most recent book. In 9-9-9 An Army of Davids released Tuesday, Herman Cain has agreed with Ron Paul and called for a return to the gold standard.
However imperfect a gold standard may be, it remains the best among all alternatives. The empirical data for both the classical gold standard, which I favor—and even the flawed “gold-exchange” standard, as we had under the Bretton Woods system—are impressive.
I realize the Washington establishment goes ballistic at this suggestion. Gold is kryptonite to big-spending politicians. It is to the moochers and looters in government what sunlight and garlic are to vampires.
It is interesting how quickly Herman Cain has changed his stance on monetary policy. Writing for the Wall Street Journal, Cain explains that he realizes how popular a return to a gold standard is among Americans.
Nearly half (44%) support a return to a gold standard, according to an October 2011 Rasmussen Report. That support soars to 57% when respondents know it will “dramatically reduce the powers of bankers and the political class to steer the economy.”
In his book, Cain and his co-author, Rich Lowrie, provide principles for a smooth transition to a gold standard. Congressman Ron Paul has yet to comment on his influence on Herman Cain.