Between 1947 and 1971 — that is, in the first generation of the Bretton Woods agreements, under which America defined the dollar as a 35th of an ounce of gold —the unemployment rate in America averaged but 4.7%. Since 1971 —that is, since America’s abandoned Bretton Woods and opened the age of fiat money — unemployment has averaged 6.4%. Now we understand that the above-described coincidence does not establish causality. But what a job for all the Ph.D.s among those who manage what James Grant likes to call the Ph.D.-backed dollar.
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