What Your Money is Really Worth: A Journey from Gold to a New Economic Vision

What’s up Viva Fam,

We often think of a resource as something simple: money, food, or oil. But that simple word can lead to a much deeper question about what gives anything value. As it turns out, the value of the very money in your wallet is at the center of a debate between what is real, what is necessary, and what might just be an illusion.

The Great Divide: Gold vs. The Dollar

For a long time, the US dollar was tied to a tangible resource: gold. This made sense because gold is a universally accepted, finite asset. But in the 70s that all changed, and the dollar became a fiat currency—money that's valuable only because the government says it is. This is where the debate begins. While the government argues that money's value is stable, you could argue that its worth is an illusion. The data shows that the dollar’s value has steadily fallen over time, while the price of gold has soared, exposing how the system favors a rising cost of living over a stable one. When the U.S. left the gold standard in 1971, gold was officially valued at $35 per troy ounce. Since then, its price has soared dramatically:

• By the end of the 1970s, gold had risen to over $600 per ounce.

  
  

• By the early 2020s, the price of gold hit and surpassed $2,000 per ounce, a new all-time high.

  
  

• More recently, in 2025, the price has even climbed to roughly $3,500 per ounce and is trending higher.

  
  

This dramatic increase in gold's value directly visualizes the decline of the dollar's purchasing power.

The Dollar's Purchasing Power

The value of the dollar isn't just an abstract concept; it can be measured by what a dollar can buy over time. Since the early 1970s, the dollar has lost a significant portion of its purchasing power due to inflation.

• A dollar in 1970 could buy a significantly greater amount of goods and services than a dollar today.

  
  

• The Bureau of Labor Statistics' Consumer Price Index (CPI) shows a long-term trend of rising prices for everyday items. For example, housing and food prices have risen significantly in recent years.

The Real Cost of a Dollar

When we talk about the dollar's value falling, it's not just a theory—it's visible in the prices of things we buy every day. Take a look at the drastic difference in what a dollar could buy in the early 1970s versus today:

A Loaf of Bread (white pan bread)

• 1970s: ~$0.25

• Today (2025): ~$1.85 (According to U.S. Bureau of Labor Statistics data for July 2025)

A Gallon of Gas (regular unleaded)

• 1970s: ~$0.36

• Today (2025): ~$3.14 (U.S. average, according to AAA)

An Average New Car

• 1970s: ~$3,000 - $4,000

• Today (2025): ~$48,000 (According to reports from MoneyGeek.com and other auto industry analysts)

  
  

These numbers show that what cost just a few dollars a generation ago now costs ten, twenty, or even thirty times as much. This is a clear illustration of inflation and the declining purchasing power of the dollar.

The Debate on Control

The government’s argument is that without the ability to print more money, they couldn't "steer" the economy to prevent depressions and widespread unemployment. But a powerful counterpoint is that the economy has been suffering from depressions and widespread unemployment despite their control methods. Honestly, the economy can't really be controlled anyway and simply printing more money doesn't solve anything. Many believe that this control has simply led to a focus on "faux growth" fueled by debt and credit, leading to a system that benefits those with assets at the expense of those who rely on wages. The argument here is that the official reason for control doesn’t match the reality of economic instability.

The Impact of Inflation and Economic Policy

The generic explanations for economic policy—such as the need to "steer the economy" or prevent a depression—don't fully account for the real-world consequences. When a central bank prints more money, the supply of currency increases, which can lead to a decrease in its purchasing power. This is the essence of inflation. As prices rise, people's wages often don't keep pace, forcing them to work harder or longer just to maintain their standard of living.

The feeling that this is a system designed to benefit one group at the expense of another is a core part of the argument. Some of the key mechanisms that reinforce this feeling are:

• The Devaluation of Labor: When a dollar buys less, the value of a person's hourly wage or salary effectively decreases. This can make it feel like the system is devaluing their labor.

  
  

• The Focus on Debt: The modern economy relies heavily on credit and debt. For those with assets, this can be a tool for leverage and growth, but for those with only wages, it can become a trap of rising interest and payments.

  
  

The Role of Education and Self-Sufficiency

The idea that a government could have invested in its citizens through financial literacy and other educational programs speaks to a vision of an economy built on human capital rather than just monetary policy. A more financially literate population would be better equipped to navigate a complex system, manage their own wealth, and potentially contribute to a more stable economy.

The lack of financial education in schools is a widely criticized issue. Many feel it leaves people unprepared for the realities of personal finance, making them more vulnerable to debt and less likely to build wealth. This can create a cycle that is difficult to break out of, reinforcing the feeling that the system is designed to keep certain people in a state of economic struggle.

A Vision for a Different World

What if the system was different? What if we returned to a system where value was honest and tangible? This vision is an economy that's not driven by endless consumerism but by a commitment to real, consistent growth.

In this model, wealth is not just an illusion of paper money. It's built on a foundation of tangible assets like real estate, intellectual property, businesses, and labor. While these assets are not always liquid, they serve as the ultimate source of value. The liquid part of the system would be a currency, like gold-backed dollars, used for daily transactions. This currency would be a practical tool, but the true wealth of a nation would be its physical resources and the productivity of its people.

This would be a system where the "value" of money isn't an illusion but is tied to something real and fixed. It’s a way of saying that what truly matters isn't in a bank account but in a person’s work, their integrity, and a shared agreement on what is truly valuable, allowing for stable, consistent, and actual growth.

What do you think? Share your comments below!