Estimated Time to Read: 3 minutes
Among the issues that affect the Liberty Principles promoted by Texas Policy Research, some receive constant public attention: taxation, regulation, and the proper limits of government power. Others receive far less discussion but are just as essential to a free society. One of those principles is sound money.
Sound money simply means a monetary system that preserves purchasing power over time and prevents the government from manipulating currency for political convenience. While it may sound like an abstract economic concept, its consequences are deeply personal for Texas families.
Classical liberal economists have long warned that unstable currency undermines both economic prosperity and individual liberty. Inflation operates as a hidden tax that quietly erodes the value of wages, savings, and retirement accounts without a single vote being cast.
Texans have experienced this reality in recent years. When inflation rises, the cost of groceries, housing, energy, and everyday necessities climbs while the purchasing power of the dollar declines. Families who work hard, save diligently, and plan responsibly often find their financial security steadily weakened.
The American founders understood the dangers of unstable money well. After witnessing the inflationary collapse of paper currency during the Revolutionary War, they embedded safeguards in the Constitution. Article I, Section 10 prohibits states from making anything but gold and silver coin legal tender in payment of debts, a clear signal that stable currency was viewed as essential to economic liberty.
While modern monetary policy is largely controlled by the federal government, states still possess tools to reinforce financial stability and expand monetary options for their citizens.
Texas has already taken important steps. In 2015, the Legislature established the Texas Bullion Depository, allowing individuals and institutions to store gold and silver in a secure state-administered facility. The goal was simple: to ensure Texans have the ability to hold and protect real assets within the state.
More recently, lawmakers have explored additional sound money policies. In 2025, the Texas Legislature passed House Bill 1056, authored by State Rep. Mark Dorazio (R-San Antonio), relating to the recognition of gold and silver specie (money in the form of coins) as legal tender and the establishment of a transactional currency based on gold and silver.
Other proposals have examined removing tax barriers on precious metals transactions and clarifying that gold and silver may function more easily within Texas financial markets.
From the perspective of the Liberty Principles, sound money is fundamentally about protecting the value of honest work. When currency loses value through inflation, families lose their ability to plan for the future. Retirement savings erode, wages struggle to keep pace with rising prices, and long-term economic planning becomes increasingly difficult.
Stable money, by contrast, rewards productivity, saving, and investment. It strengthens markets rather than distorting them.
Texas cannot control federal monetary policy, but it can lead in providing financial stability and freedom within its own borders.
For a state built on independence, economic opportunity, and respect for individual liberty, defending sound money is not just good policy; it is a principle worth protecting.
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