What happened in 1971?

On August 15, 1971, President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed rate, effectively ending the Bretton Woods system and ushering in the era of fiat currency.

What was the Nixon Shock?

The Nixon Shock refers to the series of economic measures taken by President Nixon in 1971, most notably the unilateral cancellation of the direct international convertibility of the United States dollar to gold.

What is the Bretton Woods system?

The Bretton Woods system was the international monetary system established in 1944 where 44 nations agreed to peg their currencies to the U.S. dollar, which was convertible to gold at $35 per ounce. It ended in 1971.

How has inflation changed since 1971?

Since 1971, cumulative inflation in the U.S. has exceeded 3,000%. The dollar has lost over 97% of its purchasing power when measured against gold.

Why did wages stop growing with productivity after 1971?

From 1948 to 1971, worker productivity and compensation grew in lockstep. After the gold standard ended, productivity continued to rise but real wages stagnated, creating a growing gap between what workers produce and what they earn.

Fiat since 1971 -- 50+ Interactive Charts on the End of the Gold Standard

Fiat since 1971On August 15, 1971, President Nixon ended the dollar's convertibility to gold, severing the last link between money and something real. This site presents 50+ interactive charts showing the economic, social, and political consequences of that decision, with data updated through 2024. An update to wtfhappenedin1971.com.Please enable JavaScript to view the interactive charts.