In an age of widespread misinformation, it appears that there is plenty of confusion about what gives the U.S. dollar value. According to our recent study, the Perceptions and Understanding of Money — 2020 28% of Americans believe that the U.S. dollar is backed by gold—as you may know, it’s not.
The revelation that the dollar is not backed by gold may spark a question: what, if not gold, is the dollar backed by? Posed in other terms: what gives the dollar value, exactly?
It’s tough to blame the average citizen for not knowing exactly what the Federal Reserve does (it can get complicated), but it certainly doesn’t hurt to have some idea. The Federal Reserve leadership’s opinions and actions carry real consequences for you, whether you realize it yet or not.
Most Americans may have the general sense that federal entities have some impact on their money, as they surely notice when taxes are withheld from their paycheck. Findings from our recent report, the Perceptions and Understanding of Money — 2020 indicate that knowledge of the U.S. national banking system often does not go much deeper than the “general sense” stage.
The recent health scare surrounding Covid-19 seems to have accelerated the move towards a cashless society, with cashless payment spiking in concert with viral cases.
Yet, our findings in the study Perceptions and Understanding of Money — 2020 indicate that the significant majority of Americans are not psyched about parting with their paper money on a permanent basis.
What if I told you that the money you deposited into your bank account was carried right out the back door and placed into the coffers of somebody or some institution that you had never met, heard of, or authorized to handle your money? Would you be cool with it?