Americans have gotten used to "mediocrity" in the economy, which has not performed as well as it could have if the nation's currency was backed by gold, said Steve Lonegan, director of the Monetary Policy for American Principles in Action.
"We've become accustomed from mediocrity to mediocre economic growth. And, what we're watching is middle-class Americans are being caught in this vice grip of wage stagnation and the rising cost of living, all because of our monetary policy of the Federal Reserve Bank that simply prints money out of thin air. It has to end," Lonegan told
Newsmax TV's "America's Forum" on Monday.
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To reverse the trend, Lonegan is calling for a return to the gold standard and has organized a campaign called Fix the Dollar to "educate Americans about what's happening to money."
"The Fix the Dollar campaign is to ignite understanding on the ground with average Americans, because politicians, Washington isn't getting it. But Americans, do they understand that their quality of life is being undermined? That it's diminishing." he said.
The problem began when former President Richard Nixon removed gold as the backing for the U.S. currency, Lonegan explained, adding that the economy has not performed as well as it could have ever since.
"Since Richard Nixon ended the gold standard, closed the gold exchange window on Aug. 15, 1971, the average GDP growth per year has been 3.5 percent. In the 40 years prior to him closing the gold window, it was 4.5 percent," Lonegan said.
The difference would have meant the growth of the U.S. GDP would be "50 percent greater today" and "Americans would be 50 percent wealthier," Lonegan said. Without gold, he said "our money is backed by nothing," and warned against the government's tendency to turn to the Federal Reserve Bank and say "print me more money" to fund programs.
Lonegan said his efforts were to "mend the Fed, not end the Fed," and explained the need to "return to equitable prosperity, where people can rely and trust the value of their money."
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