document_title: Gold standard

question_text: when did the us stop the gold standard

question_tokens: when did the us stop the gold standard

text: Gold standard

text: History

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text: Origin

text: The gold specie standard arose from the widespread acceptance of gold as currency.[5] Various commodities have been used as money; typically, the one that loses the least value over time becomes the accepted form.[6] The use of gold as money began thousands of years ago in Asia Minor.[7]

text: During the early and high Middle Ages, the Byzantine gold solidus, commonly known as the bezant, was used widely throughout Europe and the Mediterranean. However, as the Byzantine Empire's economic influence declined, so too did the use of the bezant.[8] In its place, European territories chose silver as their currency over gold, leading to the development of silver standards.

text: Silver pennies based on the Roman denarius became the staple coin of Mercia in Great Britain around the time of King Offa, circa CE 757–796.[9] Similar coins, including Italian denari, French deniers, and Spanish dineros circulated in Europe. Spanish explorers discovered silver deposits in Mexico in 1522 and at Potosí in Bolivia in 1545.[10] International trade came to depend on coins such as the Spanish dollar, the Maria Theresa thaler, and later, the United States trade dollar.

text: In modern times, the British West Indies was one of the first regions to adopt a gold specie standard. Following Queen Anne's proclamation of 1704, the British West Indies gold standard was a de facto gold standard based on the Spanish gold doubloon. In 1717, Sir Isaac Newton, the master of the Royal Mint, established a new mint ratio between silver and gold that had the effect of driving silver out of circulation and putting Britain on a gold standard.[11]

text: A formal gold specie standard was first established in 1821, when Britain adopted it following the introduction of the gold sovereign by the new Royal Mint at Tower Hill in 1816. The United Province of Canada in 1853, Newfoundland in 1865, and the United States and Germany (de jure) in 1873 adopted gold. The United States used the eagle as its unit, Germany introduced the new gold mark, while Canada adopted a dual system based on both the American gold eagle and the British gold sovereign.

text: Australia and New Zealand adopted the British gold standard, as did the British West Indies, while Newfoundland was the only British Empire territory to introduce its own gold coin. Royal Mint branches were established in Sydney, Melbourne and Perth for the purpose of minting gold sovereigns from Australia's rich gold deposits.

text: The gold specie standard came to an end in the United Kingdom and the rest of the British Empire with the outbreak of World War I.

text: Silver

text: From 1750 to 1870, wars within Europe as well as an ongoing trade deficit with China (which sold to Europe but had little use for European goods) drained silver from the economies of Western Europe and the United States. Coins were struck in smaller and smaller numbers, and there was a proliferation of bank and stock notes used as money.

text: United Kingdom

text: In the 1790s, the United Kingdom suffered a silver shortage. It ceased to mint larger silver coins and instead issued "token" silver coins and overstruck foreign coins. With the end of the Napoleonic Wars, the Bank of England began the massive recoinage programme that created standard gold sovereigns, circulating crowns, half-crowns and eventually copper farthings in 1821. The recoinage of silver after a long drought produced a burst of coins. The United Kingdom struck nearly 40 million shillings between 1816 and 1820, 17 million half crowns and 1.3 million silver crowns.

text: The 1819 Act for the Resumption of Cash Payments set 1823 as the date for resumption of convertibility, which was reached by 1821. Throughout the 1820s, small notes were issued by regional banks. This was restricted in 1826, while the Bank of England was allowed to set up regional branches. In 1833 however, Bank of England notes were made legal tender and redemption by other banks was discouraged. In 1844, the Bank Charter Act established that Bank of England notes were fully backed by gold and they became the legal standard. According to the strict interpretation of the gold standard, this 1844 act marked the establishment of a full gold standard for British money.

text: United States

text: In the 1780s, Thomas Jefferson, Robert Morris and Alexander Hamilton recommended to Congress the value of a decimal system. This system would also apply to monies in the United States. The question was what type of standard: gold, silver or both.[12] The United States adopted a silver standard based on the Spanish milled dollar in 1785.

text: International

text: From 1860 to 1871 various attempts to resurrect bi-metallic standards were made, including one based on the gold and silver franc; however, with the rapid influx of silver from new deposits, the expectation of scarce silver ended.

text: The interaction between central banking and currency basis formed the primary source of monetary instability during this period. The combination of a restricted supply of notes, a government monopoly on note issuance and indirectly, a central bank and a single unit of value produced economic stability. Deviation from these conditions produced monetary crises.

text: Devalued notes or leaving silver as a store of value caused economic problems. Governments, demanding specie as payment, could drain the money out of the economy. Economic development expanded need for credit. The need for a solid basis in monetary affairs produced a rapid acceptance of the gold standard in the period that followed.

text: Japan

text: Following Germany's decision after the 1870–1871 Franco-Prussian War to extract reparations to facilitate a move to the gold standard, Japan gained the needed reserves after the Sino-Japanese War of 1894–1895. For Japan, moving to gold was considered vital for gaining access to Western capital markets.[13]

text: Bimetallic standard

text: US: Pre-Civil War

text: In 1792, Congress passed the Mint and Coinage Act. It authorized the federal government's use of the Bank of the United States to hold its reserves, as well as establish a fixed ratio of gold to the U.S. dollar. Gold and silver coins were legal tender, as was the Spanish real. In 1792 the market price of gold was about 15 times that of silver.[12] Silver coins left circulation, exported to pay for the debts taken on to finance the American Revolutionary War. In 1806 President Jefferson suspended the minting of silver coins. This resulted in a derivative silver standard, since the Bank of the United States was not required to fully back its currency with reserves. This began a long series of attempts by the United States to create a bi-metallic standard.

text: The intention was to use gold for large denominations, and silver for smaller denominations. A problem with bimetallic standards was that the metals' absolute and relative market prices changed. The mint ratio (the rate at which the mint was obligated to pay/receive for gold relative to silver) remained fixed at 15 ounces of silver to 1 ounce of gold, whereas the market rate fluctuated from 15.5 to 1 to 16 to 1. With the Coinage Act of 1834, Congress passed an act that changed the mint ratio to approximately 16 to 1. Gold discoveries in California in 1848 and later in Australia lowered the gold price relative to silver; this drove silver money from circulation because it was worth more in the market than as money.[14] Passage of the Independent Treasury Act of 1848 placed the U.S. on a strict hard-money standard. Doing business with the American government required gold or silver coins.

text: Government accounts were legally separated from the banking system. However, the mint ratio (the fixed exchange rate between gold and silver at the mint) continued to overvalue gold. In 1853, the US reduced the silver weight of coins to keep them in circulation and in 1857 removed legal tender status from foreign coinage. In 1857 the final crisis of the free banking era began as American banks suspended payment in silver, with ripples through the developing international financial system. Due to the inflationary finance measures undertaken to help pay for the US Civil War, the government found it difficult to pay its obligations in gold or silver and suspended payments of obligations not legally specified in specie (gold bonds); this led banks to suspend the conversion of bank liabilities (bank notes and deposits) into specie. In 1862 paper money was made legal tender. It was a fiat money (not convertible on demand at a fixed rate into specie). These notes came to be called "greenbacks".[14]

text: US: Post-Civil War

text: After the Civil War, Congress wanted to reestablish the metallic standard at pre-war rates. The market price of gold in greenbacks was above the pre-War fixed price ($20.67 per ounce of gold) requiring deflation to achieve the pre-War price. This was accomplished by growing the stock of money less rapidly than real output. By 1879 the market price matched the mint price of gold. The coinage act of 1873 (also known as the Crime of ‘73) demonetized silver. This act removed the 412.5 grain silver dollar from circulation. Subsequently silver was only used in coins worth less than $1 (fractional currency). With the resumption of convertibility on June 30, 1879 the government again paid its debts in gold, accepted greenbacks for customs and redeemed greenbacks on demand in gold. Greenbacks were therefore perfect substitutes for gold coins. During the latter part of the nineteenth century the use of silver and a return to the bimetallic standard were recurrent political issues, raised especially by William Jennings Bryan, the People's Party and the Free Silver movement . In 1900 the gold dollar was declared the standard unit of account and a gold reserve for government issued paper notes was established. Greenbacks, silver certificates, and silver dollars continued to be legal tender, all redeemable in gold.[14]

text: Fluctuations in the US gold stock, 1862–1877

text:
US gold stock

1862
59 tons

1866
81 tons

1875
50 tons

1878
78 tons

text: The US had a gold stock of 1.9 million ounces (59 t) in 1862. Stocks rose to 2.6 million ounces (81 t) in 1866, declined in 1875 to 1.6 million ounces (50 t) and rose to 2.5 million ounces (78 t) in 1878. Net exports did not mirror that pattern. In the decade before the Civil War net exports were roughly constant; postwar they varied erratically around pre-war levels, but fell significantly in 1877 and became negative in 1878 and 1879. The net import of gold meant that the foreign demand for American currency to purchase goods, services, and investments exceeded the corresponding American demands for foreign currencies. In the final years of the greenback period (1862–1879), gold production increased while gold exports decreased. The decrease in gold exports was considered by some to be a result of changing monetary conditions. The demands for gold during this period were as a speculative vehicle, and for its primary use in the foreign exchange markets financing international trade. The major effect of the increase in gold demand by the public and Treasury was to reduce exports of gold and increase the Greenback price of gold relative to purchasing power.[15]

text: Gold exchange standard

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text: Towards the end of the 19th century, some silver standard countries began to peg their silver coin units to the gold standards of the United Kingdom or the United States. In 1898, British India pegged the silver rupee to the pound sterling at a fixed rate of 1s 4d, while in 1906, the Straits Settlements adopted a gold exchange standard against sterling, fixing the silver Straits dollar at 2s 4d.

text: Around the start of the 20th century, the Philippines pegged the silver peso/dollar to the U.S. dollar at 50 cents. This move was assisted by the passage of the Philippines Coinage Act by the United States Congress on March 3, 1903.[16] Around the same time Mexico and Japan pegged their currencies to the dollar. When Siam adopted a gold exchange standard in 1908, only China and Hong Kong remained on the silver standard.

text: When adopting the gold standard, many European nations changed the name of their currency, for instance from Daler (Sweden and Denmark) or Gulden (Austria-Hungary) to Crown, since the former names were traditionally associated with silver coins and the latter with gold coins.

text: Impact of World War I

text: Governments with insufficient tax revenue suspended convertibility repeatedly in the 19th century. The real test, however, came in the form of World War I, a test which "it failed utterly" according to economist Richard Lipsey.[5]

text: By the end of 1913, the classical gold standard was at its peak but World War I caused many countries to suspend or abandon it.[17] According to Lawrence Officer the main cause of the gold standard’s failure to resume its previous position after World War 1 was “the Bank of England's precarious liquidity position and the gold-exchange standard.” A run on sterling caused Britain to impose exchange controls that fatally weakened the standard; convertibility was not legally suspended, but gold prices no longer played the role that they did before.[18] In financing the war and abandoning gold, many of the belligerents suffered drastic inflations. Price levels doubled in the US and Britain, tripled in France and quadrupled in Italy. Exchange rates changed less, even though European inflations were more severe than America’s. This meant that the costs of American goods decreased relative to those in Europe. Between August 1914 and spring of 1915, the dollar value of US exports tripled and its trade surplus exceeded $1 billion for the first time.[19]

text: Ultimately, the system could not deal quickly enough with the large balance of payments deficits and surpluses; this was previously attributed to downward wage rigidity brought about by the advent of unionized labor, but is now considered as an inherent fault of the system that arose under the pressures of war and rapid technological change. In any case, prices had not reached equilibrium by the time of the Great Depression, which served to kill off the system completely.[5]

text: For example, Germany had gone off the gold standard in 1914, and could not effectively return to it because War reparations had cost it much of its gold reserves. During the Occupation of the Ruhr the German central bank (Reichsbank) issued enormous sums of non-convertible marks to support workers who were on strike against the French occupation and to buy foreign currency for reparations; this led to the German hyperinflation of the early 1920s and the decimation of the German middle class.

text: The US did not suspend the gold standard during the war. The newly created Federal Reserve intervened in currency markets and sold bonds to “sterilize”[vague] some of the gold imports that would have otherwise increased the stock of money.[citation needed] By 1927 many countries had returned to the gold standard.[14] As a result of World War 1 the United States, which had been a net debtor country, had become a net creditor by 1919.[20]

text: Gold bullion replaces gold specie as standard

text: The gold specie standard ended in the United Kingdom and the rest of the British Empire at the outbreak of World War I, when Treasury notes replaced the circulation of gold sovereigns and gold half sovereigns. Legally, the gold specie standard was not repealed. The end of the gold standard was successfully effected by the Bank of England through appeals to patriotism urging citizens not to redeem paper money for gold specie. It was only in 1925, when Britain returned to the gold standard in conjunction with Australia and South Africa that the gold specie standard was officially ended.

text: The British Gold Standard Act 1925 both introduced the gold bullion standard and simultaneously repealed the gold specie standard. The new standard ended the circulation of gold specie coins. Instead, the law compelled the authorities to sell gold bullion on demand at a fixed price, but "only in the form of bars containing approximately four hundred ounces troy [12 kg] of fine gold".[21][22] John Maynard Keynes, citing deflationary dangers, argued against resumption of the gold standard.[23]

text: Many other countries followed Britain in returning to the gold standard, this was followed by a period of relative stability but also deflation.[24] This state of affairs lasted until the Great Depression (1929–1939) forced countries off the gold standard. In September 19, 1931, speculative attacks on the pound forced Britain to abandon the gold standard. Loans from American and French Central Banks of £50,000,000 were insufficient and exhausted in a matter of weeks, due to large gold outflows across the Atlantic.[25][26][27] The British benefited from this departure. They could now use monetary policy to stimulate the economy. Australia and New Zealand had already left the standard and Canada quickly followed suit.

text: The interwar partially backed gold standard was inherently unstable, because of the conflict between the expansion of liabilities to foreign central banks and the resulting deterioration in the Bank of England's reserve ratio. France was then attempting to make Paris a world class financial center, and it received large gold flows as well.[28]

text: In May 1931 a run on Austria's largest commercial bank caused it to fail. The run spread to Germany, where the central bank also collapsed. International financial assistance was too late and in July 1931 Germany adopted exchange controls, followed by Austria in October. The Austrian and German experiences, as well as British budgetary and political difficulties, were among the factors that destroyed confidence in sterling, which occurred in mid-July 1931. Runs ensued and the Bank of England lost much of its reserves.

text: Depression and World War II

text: Great Depression

text: Some economic historians, such as Barry Eichengreen, blame the gold standard of the 1920s for prolonging the economic depression which started in 1929 and lasted for about a decade.[30] In the United States, adherence to the gold standard prevented the Federal Reserve from expanding the money supply to stimulate the economy, fund insolvent banks and fund government deficits that could "prime the pump" for an expansion. Once off the gold standard, it became free to engage in such money creation. The gold standard limited the flexibility of the central banks' monetary policy by limiting their ability to expand the money supply. In the US, the central bank was required by the Federal Reserve Act (1913) to have gold backing 40% of its demand notes.[31] Others including former Federal Reserve Chairman Ben Bernanke and Nobel Prize-winner Milton Friedman place the blame for the severity and length of the Great Depression at the feet of the Federal Reserve, mostly due to the deliberate tightening of monetary policy even after the gold standard.[32] They blamed the US major economic contraction in 1937 on tightening of monetary policy resulting in higher cost of capital, weaker securities markets, reduced net government contribution to income, the undistributed profits tax and higher labor costs.[33] The money supply peaked in March 1937, with a trough in May 1938.[34]

text: Higher interest rates intensified the deflationary pressure on the dollar and reduced investment in U.S. banks. Commercial banks converted Federal Reserve Notes to gold in 1931, reducing its gold reserves and forcing a corresponding reduction in the amount of currency in circulation. This speculative attack created a panic in the U.S. banking system. Fearing imminent devaluation many depositors withdrew funds from U.S. banks.[35] As bank runs grew, a reverse multiplier effect caused a contraction in the money supply.[36] Additionally the New York Fed had loaned over $150 million in gold (over 240 tons) to European Central Banks. This transfer contracted the US money supply. The foreign loans became questionable once Britain, Germany, Austria and other European countries went off the gold standard in 1931 and weakened confidence in the dollar.[37]

text: The forced contraction of the money supply resulted in deflation. Even as nominal interest rates dropped, inflation-adjusted real interest rates remained high, rewarding those who held onto money instead of spending it, further slowing the economy.[38] Recovery in the United States was slower than in Britain, in part due to Congressional reluctance to abandon the gold standard and float the U.S. currency as Britain had done.[39]

text: In the early 1930s, the Federal Reserve defended the dollar by raising interest rates, trying to increase the demand for dollars. This helped attract international investors who bought foreign assets with gold.[35]

text: Congress passed the Gold Reserve Act on 30 January 1934; the measure nationalized all gold by ordering Federal Reserve banks to turn over their supply to the U.S. Treasury. In return the banks received gold certificates to be used as reserves against deposits and Federal Reserve notes. The act also authorized the president to devalue the gold dollar. Under this authority the president, on 31 January 1934, changed the value of the dollar from $20.67 to the troy ounce to $35 to the troy ounce, a devaluation of over 40%.

text: Other factors in the prolongation of the Great Depression include trade wars and the reduction in international trade caused by barriers such as Smoot–Hawley Tariff in the US and the Imperial Preference policies of Great Britain,[40] the failure of central banks to act responsibly,[41] government policies designed to prevent wages from falling, such as the Davis–Bacon Act of 1931, during the deflationary period resulting in production costs dropping slower than sales prices, thereby injuring business profits[42] and increases in taxes to reduce budget deficits and to support new programs such as Social Security. The US top marginal income tax rate went from 25% to 63% in 1932 and to 79% in 1936,[43] while the bottom rate increased over tenfold, from .375% in 1929 to 4% in 1932.[44] The concurrent massive drought resulted in the US Dust Bowl.

text: The Austrian School asserted that the Great Depression was the result of a credit bust.[45] Alan Greenspan wrote that the bank failures of the 1930s were sparked by Great Britain dropping the gold standard in 1931. This act "tore asunder" any remaining confidence in the banking system.[46] Financial historian Niall Ferguson wrote that what made the Great Depression truly 'great' was the European banking crisis of 1931.[47] According to Fed Chairman Marriner Eccles, the root cause was the concentration of wealth resulting in a stagnating or decreasing standard of living for the poor and middle class. These classes went into debt, producing the credit explosion of the 1920s. Eventually the debt load grew too heavy, resulting in the massive defaults and financial panics of the 1930s.[48]

text: World War II

text: Under the Bretton Woods international monetary agreement of 1944, the gold standard was kept without domestic convertibility. The role of gold was severely constrained, as other countries’ currencies were fixed in terms of the dollar. Many countries kept reserves in gold and settled accounts in gold. Still they preferred to settle balances with other currencies, with the American dollar becoming the favorite. The International Monetary Fund was established to help with the exchange process and assist nations in maintaining fixed rates. Within Bretton Woods adjustment was cushioned through credits that helped countries avoid deflation. Under the old standard, a country with an overvalued currency would lose gold and experience deflation until the currency was again valued correctly. Most countries defined their currencies in terms of dollars, but some countries imposed trading restrictions to protect reserves and exchange rates. Therefore, most countries' currencies were still basically inconvertible. In the late 1950s, the exchange restrictions were dropped and gold became an important element in international financial settlements.[14]

text: Bretton Woods

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text: After the Second World War, a system similar to a gold standard and sometimes described as a "gold exchange standard" was established by the Bretton Woods Agreements. Under this system, many countries fixed their exchange rates relative to the U.S. dollar and central banks could exchange dollar holdings into gold at the official exchange rate of $35 per ounce; this option was not available to firms or individuals. All currencies pegged to the dollar thereby had a fixed value in terms of gold.[5]

text: Starting in the 1959–1969 administration of President Charles de Gaulle and continuing until 1970, France reduced its dollar reserves, exchanging them for gold at the official exchange rate, reducing US economic influence. This, along with the fiscal strain of federal expenditures for the Vietnam War and persistent balance of payments deficits, led U.S. President Richard Nixon to end international convertibility of the U.S. dollar to gold on August 15, 1971 (the "Nixon Shock").

text: This was meant to be a temporary measure, with the gold price of the dollar and the official rate of exchanges remaining constant. Revaluing currencies was the main purpose of this plan. No official revaluation or redemption occurred. The dollar subsequently floated. In December 1971, the “Smithsonian Agreement” was reached. In this agreement, the dollar was devalued from $35 per troy ounce of gold to $38. Other countries' currencies appreciated. However, gold convertibility did not resume. In October 1973, the price was raised to $42.22. Once again, the devaluation was insufficient. Within two weeks of the second devaluation the dollar was left to float. The $42.22 par value was made official in September 1973, long after it had been abandoned in practice. In October 1976, the government officially changed the definition of the dollar; references to gold were removed from statutes. From this point, the international monetary system was made of pure fiat money.

text: Production of gold

text: An estimated total of 174,100 tonnes of gold have been mined in human history, according to GFMS as of 2012. This is roughly equivalent to 5.6 billion troy ounces or, in terms of volume, about 9,261 cubic metres (327,000 cu ft), or a cube 21 metres (69 ft) on a side. There are varying estimates of the total volume of gold mined. One reason for the variance is that gold has been mined for thousands of years. Another reason is that some nations are not particularly open about how much gold is being mined. In addition, it is difficult to account for the gold output in illegal mining activities.[49]

text: World production for 2011 was at 2,700 tonnes. Since the 1950s, annual gold output growth has approximately kept pace with world population growth of around 2x[clarification needed],[50] although far less than world economic growth of some 8x[clarification needed],[51] or some 4x[clarification needed] since 1980.[52]

text: Theory

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text: Commodity money is inconvenient to store and transport in large amounts. Furthermore, it does not allow a government to manipulate the flow of commerce with the same ease that a fiat currency does. As such, commodity money gave way to representative money and gold and other specie were retained as its backing.

text: Gold was a preferred form of money due to its rarity, durability, divisibility, fungibility and ease of identification,[53] often in conjunction with silver. Silver was typically the main circulating medium, with gold as the monetary reserve. Commodity money was anonymous, as identifying marks can be removed. Commodity money retains its value despite what may happen to the monetary authority. After the fall of South Vietnam, many refugees carried their wealth to the West in gold after the national currency became worthless.[citation needed]

text: Under commodity standards currency itself has no intrinsic value, but is accepted by traders because it can be redeemed any time for the equivalent specie. A US silver certificate, for example, could be redeemed for an actual piece of silver.

text: Representative money and the gold standard protect citizens from hyperinflation and other abuses of monetary policy, as were seen in some countries during the Great Depression. Commodity money conversely led to deflation and bank runs.

text: Countries that left the gold standard earlier than other countries recovered from the Great Depression sooner. For example, Great Britain and the Scandinavian countries, which left the gold standard in 1931, recovered much earlier than France and Belgium, which remained on gold much longer. Countries such as China, which had a silver standard, almost entirely avoided the depression (due to the fact it was then barely integrated into the global economy). The connection between leaving the gold standard and the severity and duration of the depression was consistent for dozens of countries, including developing countries. This may explain why the experience and length of the depression differed between national economies.[54]

text: Variations

text: A full or 100%-reserve gold standard exists when the monetary authority holds sufficient gold to convert all the circulating representative money into gold at the promised exchange rate. It is sometimes referred to as the gold specie standard to more easily distinguish it. Opponents of a full standard consider it difficult to implement, saying that the quantity of gold in the world is too small to sustain worldwide economic activity at or near current gold prices; implementation would entail a many-fold increase in the price of gold.[citation needed] Gold standard proponents have said, "Once a money is established, any stock of money becomes compatible with any amount of employment and real income."[55] While prices would necessarily adjust to the supply of gold, the process may involve considerable economic disruption, as was experienced during earlier attempts to maintain gold standards.[56]

text: In an international gold-standard system (which is necessarily based on an internal gold standard in the countries concerned),[57] gold or a currency that is convertible into gold at a fixed price is used to make international payments. Under such a system, when exchange rates rise above or fall below the fixed mint rate by more than the cost of shipping gold, inflows or outflows occur until rates return to the official level. International gold standards often limit which entities have the right to redeem currency for gold.

text: Advantages

text:
Long-term price stability has been described as one of the virtues of the gold standard.[58] The gold standard makes it difficult for governments to inflate prices through expanding the money supply. Under the gold standard, significant inflation is rare, and hyperinflation is essentially impossible because the money supply can only grow at the rate that the gold supply increases. High inflation under a gold standard is seen only when warfare destroys a large part of an economy, reducing the production of goods, or when a major new gold source becomes available.[59] In the U.S., inflation occurred during the Civil War, which destroyed the economy of the South.[60] Inflation also followed the California Gold Rush that made large amounts of gold available for minting.[61] Historical data shows that the magnitude of short run swings in prices were far higher under the gold standard.[62][58]
The gold standard provides fixed international exchange rates between participating countries and thus reduces uncertainty in international trade. Historically, imbalances between price levels were offset by a balance-of-payment adjustment mechanism called the "price–specie flow mechanism".[59] Gold used to pay for imports reduces the money supply of importing nations, causing deflation, which makes them more competitive, while the importation of gold by net exporters serves to increase their money supply, causing inflation, making them less competitive.[63]
A gold standard does not allow some types of financial repression.[64] Financial repression acts as a mechanism to transfer wealth from creditors to debtors, particularly the governments that practice it. Financial repression is most successful in reducing debt when accompanied by inflation and can be considered a form of taxation.[65][66] In 1966 Alan Greenspan wrote "Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."[67]

text: Disadvantages

text:
The unequal distribution of gold deposits makes the gold standard more advantageous for those countries that produce gold.[68] In 2010 the largest producers of gold, in order, were China, Australia, U.S., South Africa and Russia.[69] The country with the largest unmined gold deposits is Australia.[70]
Some economists believe that the gold standard acts as a limit on economic growth. "As an economy's productive capacity grows, then so should its money supply. Because a gold standard requires that money be backed in the metal, then the scarcity of the metal constrains the ability of the economy to produce more capital and grow."[71]
Mainstream economists believe that economic recessions can be largely mitigated by increasing the money supply during economic downturns.[72] A gold standard means that the money supply would be determined by the gold supply and hence monetary policy could no longer be used to stabilize the economy.[73] The gold standard is often blamed for prolonging the Great Depression, as under the gold standard, central banks could not expand credit at a fast enough rate to offset deflationary forces.[74]
Although the gold standard brings long-run price stability, it is historically associated with high short-run price volatility.[58][75] It has been argued by Schwartz, among others, that instability in short-term price levels can lead to financial instability as lenders and borrowers become uncertain about the value of debt.[75]
Deflation punishes debtors.[76][77] Real debt burdens therefore rise, causing borrowers to cut spending to service their debts or to default. Lenders become wealthier, but may choose to save some of the additional wealth, reducing GDP.[78]
The money supply would essentially be determined by the rate of gold production. When gold stocks increase more rapidly than the economy, there is inflation and the reverse is also true.[58][79] The consensus view is that the gold standard contributed to the severity and length of the Great Depression.[80][81]
Hamilton contended that the gold standard is susceptible to speculative attacks when a government's financial position appears weak. Conversely, this threat discourages governments from engaging in risky policy (see moral hazard). For example, the U.S. was forced to contract the money supply and raise interest rates in September 1931 to defend the dollar after speculators forced the UK off the gold standard.[81][82][83][84]
Devaluing a currency under a gold standard would generally produce sharper changes than the smooth declines seen in fiat currencies, depending on the method of devaluation.[85]
Most economists favor a low, positive rate of inflation of around 2%. This reflects fear of deflationary shocks and the belief that active monetary policy can dampen fluctuations in output and unemployment. Inflation gives them room to tighten policy without inducing deflation.[86]
A gold standard provides practical constraints against the measures that central banks might otherwise use to respond to economic crises.[87] Creation of new money reduces interest rates and thereby increases demand for new lower cost debt, raising the demand for money.[88]

text: Gold standard and Bitcoin

text: According to research produced by the Bank of Canada, the emerging Bitcoin economy has many similarities with the economy based on gold standard, in particular:[89][90]

text:
limited and predictable supply of the anchor of the monetary system
no central bank or monetary authority controls the supply
low or non-existent inflation
virtually no arbitrage costs for international transactions
Governments have less control over their domestic economies
Governments lose seigniorage revenues that they obtain from the ability to almost costlessly create money

text: Edward Hadas and Michael Hiltzik noted that monetary systems based on Bitcoin and gold have some similar disadvantages:

text:
independence from government[91][92]
price declines[91]
less spending during crisis times[91]

text: George Gilder, a proponent of gold standard, proposed breaking "the government monopoly on money" by using a combination of Bitcoin for the internet and treating gold in tax terms as currency.[93][94]

text: Advocates

text: A return to the gold standard was considered by the US Gold Commission back in 1982, but found only minority support.[95] In 2001 Malaysian Prime Minister Mahathir bin Mohamad proposed a new currency that would be used initially for international trade among Muslim nations, using the Islamic gold dinar, defined as 4.25 grams of pure (24-carat) gold. Mahathir claimed it would be a stable unit of account and a political symbol of unity between Islamic nations. This would purportedly reduce dependence on the US dollar and establish a non-debt-backed currency in accord with Sharia law that prohibited the charging of interest.[96] As of 2013[update] the global monetary system continued to rely on the US dollar as the main reserve currency.[97]

text: Former U.S. Federal Reserve Chairman, Alan Greenspan acknowledged he was one of "a small minority" within the central bank that had some positive view on the gold standard.[98] In a 1966 essay he contributed to a book by Ayn Rand, titled "Gold and Economic Freedom", Greenspan argued the case for returning to a 'pure' gold standard; in that essay he described supporters of fiat currencies as "welfare statists" intending to use monetary policy to finance deficit spending.[99] More recently he claimed that by focusing on targeting inflation "central bankers have behaved as though we were on the gold standard", rendering a return to the standard unnecessary.[100]

text: Similarly, economists like Robert Barro argued that whilst some form of "monetary constitution" is essential for stable, depoliticized monetary policy, the form this constitution takes—for example, a gold standard, some other commodity-based standard, or a fiat currency with fixed rules for determining the quantity of money—is considerably less important.[101]

text: The gold standard is supported by many followers of the Austrian School of Economics, free-market libertarians and some supply-siders.[102]

text: US politics

text: In the United States, strict constitutionalists object to the government issuing fiat currency through central banks. Some gold-standard advocates also call for a mandated end to fractional-reserve banking. Many similar alternatives have been suggested, including energy-based currencies, collections of currencies or commodities, with gold as one component.

text: Former congressman Ron Paul is a long-term, high-profile advocate of a gold standard, but has also expressed support for using a standard based on a basket of commodities that better reflects the state of the economy.[103]

text: In 2011 the Utah legislature passed a bill to accept federally issued gold and silver coins as legal tender to pay taxes.[104] As federally issued currency, the coins were already legal tender for taxes, although the market price of their metal content currently exceeds their monetary value. Similar legislation is under consideration in other US states.[105] The bill was initiated by newly elected Republican Party legislators associated with the Tea Party movement and was driven by anxiety over the policies of President Barack Obama.[106]

text: In 2013, the Arizona Legislature passed SB 1439, which would have made gold and silver coin a legal tender in payment of debt, but the bill was vetoed by the Governor.[107]

text: In 2015, some candidates for the 2016 presidential election advocated for a gold standard, based on concern that the Federal Reserve’s attempts to increase economic growth may create inflation. Economic historians did not agree with candidate's assertions that the gold standard would benefit the US economy.[108]

text: Critics

text: In 2012 a poll of 40 U.S. economists in the IGM Economic Experts Panel found that none of them agreed with a claim that a return to the gold standard would result in "price-stability and employment outcomes [that] would be better for the average American." The panel of polled economists included past Nobel Prize winners, former economic advisers to both Republican and Democratic presidents, and senior faculty from Harvard, Chicago, Stanford, MIT, and other well-known research universities. (The specific question posed to the economists was: "If the US replaced its discretionary monetary policy regime with a gold standard, defining a 'dollar' as a specific number of ounces of gold, the price-stability and employment outcomes would be better for the average American.") [3]

text: The economist Allan H. Meltzer of Carnegie Mellon University presented arguments against Ron Paul's advocacy of the gold standard since the 1970s. He sometimes summarizes his opposition by stating simply, "[W]e don’t have the gold standard. It’s not because we don’t know about the gold standard, it’s because we do."[109]


document_title: Lok Sabha

question_text: which is more powerful lok sabha or rajya sabha

root

text: Lok Sabha

text: History[edit]

text: This section does not cite any sources. Please help improve this section by adding citations to reliable sources. Unsourced material may be challenged and removed. (March 2014) (Learn how and when to remove this template message)

tag: table

text: A major portion of the Indian subcontinent was under British rule from 1858 to 1947.[8] During this period, the office of the Secretary of State for India (along with the Council of India) was the authority through whom British Parliament exercised its rule in the Indian sub-continent, and the office of Viceroy of India was created, along with an Executive Council in India, consisting of high officials of the British government. The Indian Councils Act 1861 provided for a Legislative Council consisting of the members of the Executive Council and non-official members. The Indian Councils Act 1892 established legislatures in each of the provinces of British India and increased the powers of the Legislative Council. Although these Acts increased the representation of Indians in the government, their power still remained limited, and the electorate very small. The Indian Councils Act 1909 and the Government of India Act 1919 further expanded the participation of Indians in the administration. The Indian Independence Act 1947, passed by the British parliament on 18 July 1947, divided British India (which did not include the Princely States) into two new independent countries, India and Pakistan, which were to be dominions under the Crown until they had each enacted a new constitution. The Constituent Assembly was divided into two for the separate nations, with each new Assembly having sovereign powers transferred to it for the respective dominion.

tag: p

text: The Constitution of India was adopted on 26 November 1949 and came into effect on 26 January 1950, proclaiming India to be a sovereign, democratic republic. This contained the founding principles of the law of the land which would govern India in its new form, which now included all the princely states which had not acceded to Pakistan.

text: According to Article 79 (Part V-The Union.)[9] of the Constitution of India, the Parliament of India consists of the President of India and the two Houses of Parliament known as the Council of States (Rajya Sabha) and the House of the People (Lok Sabha).

text: The Lok Sabha (House of the Leaders) was duly constituted for the first time on 17 April 1952 after the first General Elections held from 25 October 1951 to 21 February 1952.

text:
Session of Lok Sabha commenced on Date

Session No.
Date

First
13 May 1952

Second
April 1957

Third
April 1962

Fourth
March 1967

Fifth
March 1971

Sixth
March 1977

Seventh
January 1980

Eighth
December 1984

Ninth
December 1989

Tenth
June 1991

Eleventh
May 1996

Twelfth
March 1998

Thirteenth
October 1999

Fourteenth
May 2004

Fifteenth
May 2009

Sixteenth (Current)
May 2014

text: Qualifications[edit]

text: Article 84 (Part V.—The Union)[10] of Indian Constitution sets qualifications for being a member of Lok Sabha, which are as follows:

text:
He / She should be a citizen of India, and must subscribe before the Election Commission of India an oath or affirmation according to the form set out for the purpose in the Third Schedule of Indian Constitution.
He / She should not be less than 25 years of age.
He / She possesses such other qualifications as may be prescribed in that behalf by or under any law made by Parliament.
He / She should not be proclaimed criminal i.e. they should not be a convict, a confirmed debtor or otherwise disqualified by law; and
He / She should have his/her name in the electoral rolls in any part of the country.

tag: ol

text: However, a member can be disqualified of being a member of Parliament:

text:
If he / she holds office of profit;
If he / she is of unsound mind and stands so declared by a competent court
If he / she is an undischarged insolvent;
If he / she is not a citizen of India, or has voluntarily acquired the citizenship of a foreign State, or is under any acknowledgment of allegiance or adherence to a foreign State;
If he / she is violating party discipline (as per Tenth schedule of the constitution); disqualified under Representation of People Act.

text: A seat in the Lok Sabha will become vacant in the following circumstances: (during normal functioning of the House)

text:
When the holder of the seat, by writing to the speaker, resigns.
When the holder of the seat is absent from 60 consecutive days of proceedings of the House, without prior permission of the Speaker.
When the holder of the seat is subject to any disqualifications mentioned in the Constitution or any law enacted by Parliament.
A seat may also be vacated when the holder stands disqualified under the 'Anti-Defection Law'.

text: Furthermore, as per article 101 (Part V.—The Union) [11] of Indian Constitution; A person cannot be : (1) a member of both Houses of Parliament and provision shall be made by Parliament by law for the vacation by a person who is chosen a member of both Houses of his seat in one House or the other.(2) a member both of Parliament and of a House of the Legislature of a State.

text: System of elections in Lok Sabha [12]

text: Members of the Lok Sabha are directly elected by the people of India, on the basis of Universal Suffrage. For the purpose of holding direct elections to Lok Sabha; each state is divided into territorial constituencies. In this respect, the constitution of India makes the following two provisions:

text:
Each state is allotted a number of seats in the Lok Sabha in such a manner that the ratio between that number and its population is same for all the states of India. This provision does not apply for states having a population of less than 6 million (60 lakhs).
Each state is divided into territorial constituencies in such a manner that the ratio between the population of each constituency and the number of seats allotted to it remain the same throughout the state.

text: Note: The expression population here refers to the population ascertained at the preceding census (2001 Census) of which relevant figure have been published.

text: Powers[edit]

text: The Lok Sabha has certain powers that make it more powerful than the Rajya Sabha.

text:
Motions of no confidence against the government can be introduced and passed in the Lok Sabha. If passed by a majority vote, the Prime Minister and the Council of Ministers resign collectively. The Rajya Sabha has no power over such a motion, and hence has no real power over the executive. This is because the Constitution of India has only made the Union Council of ministers responsible to the Lok Sabha, not to the Rajya Sabha.
Money bills can only be introduced in the Lok Sabha, and upon being passed, are sent to the Rajya Sabha, where it can be deliberated on for up to 14 days. If not rejected by the Rajya Sabha, or 14 days lapse from the introduction of the bill in the Rajya Sabha without any action by the House, or recommendations made by the Rajya Sabha are not accepted by the Lok Sabha, the bill is considered passed. The budget is presented in the Lok Sabha by the Finance Minister in the name of the President of India.
In matters pertaining to non-financial (ordinary) bills, after the bill has been passed by the House where it was originally tabled (Lok Sabha or Rajya Sabha), it is sent to the other house, where it may be kept for a maximum period of 6 months. If the other House rejects the bill or a period of 6 months elapses without any action by that House, or the House that originally tabled the bill does not accept the recommendations made by the members of the other house, it results in a deadlock. This is resolved by a joint session of both Houses, presided over by the speaker of the Lok Sabha and decided by a simple majority. Though the Constitution has placed both houses on the same footing in this regard, in reality it is the Lok Sabha's opinions that mostly prevails—due to its bigger numerical strength.
Equal Powers with the Rajya Sabha in initiating and passing any Bill for Constitutional Amendment (by a majority of the total membership of the House and at least two-thirds majority of the members present and voting).
Equal Powers with the Rajya Sabha in initiating and passing a motion for the impeachment of the President (by two-thirds of the membership of the House).
Equal Powers with the Rajya Sabha in impeachment process (initiating and passing a motion for the removal) of the judges of the Supreme Court and the state High Courts (by a majority of the membership of the House and at least two-thirds majority of the members present and voting), who then can be removed by the President of India.
Equal Powers with the Rajya Sabha in initiating and passing a resolution declaring war or national emergency (by two-thirds majority) or constitutional emergency (by simple majority) in a state.
If the Lok Sabha is dissolved before or after the declaration of a National Emergency, the Rajya Sabha becomes the sole Parliament. It cannot be dissolved. This is a limitation on the Lok Sabha. But there is a possibility that president can exceed the term to not more than 1 year under the proclamation of emergency and the same would be lowered down to six-month if the said proclamation ceases to operate.

tag: ul

text: In conclusion, it is clear that the Lok Sabha is more powerful than the Rajya Sabha in almost all matters. Even in those matters in which the Constitution has placed both Houses on an equal footing, the Lok Sabha has more influence due to its greater numerical strength. This is typical of any Parliamentary democracy, with the lower House always being more powerful than the upper.

text: Procedure[edit]

text: Procedure in the House[edit]

text: The Rules of Procedure and Conduct of Business in Lok Sabha and Directions issued by the Speaker from time to time there under regulate the procedure in Lok Sabha. The items of business, notice of which is received from the Ministers/ Private Members and admitted by the Speaker, are included in the daily List of Business which is printed and circulated to members in advance. For various items of business to be taken up in the House the time is allotted by the House on the recommendations of the Business Advisory Committee. The Speaker presides over the sessions of the House and regulates procedure.

text: Sessions and Time of Sittings[edit]

text: Three sessions of Lok Sabha take place in a year:

text:
Budget session: February to May.
Monsoon session: July to September.
Winter session: November to mid December.

text: When in session, Lok Sabha holds its sittings usually from 11 A.M. to 1 P.M. and from 2 P.M. to 6 P.M. On some days the sittings are continuously held without observing lunch break and are also extended beyond 6 P.M. depending upon the business before the House. Lok Sabha does not ordinarily sit on Saturdays and Sundays and other closed holidays.

text: Question Hour/Zero Hour[edit]

text: The first hour of every sitting is called Question Hour. Asking questions in Parliament is the free and unfettered right of members, and during Question Hour they may ask questions of ministers on different aspects of administration and government policy in the national and international spheres. Every minister whose turn it is to answer to questions has to stand up and answer for his department's acts of omission or commission.

text: Questions are of three types—Starred, Unstarred and Short Notice. A Starred Question is one to which a member desires an oral answer in the House and which is distinguished by an asterisk mark. An unstarred Question is one which is not called for oral answer in the house and on which no supplementary questions can consequently be asked. An answer to such a question is given in writing. Minimum period of notice for starred/ unstarred question is 10 clear days. If the questions given notice of are admitted by the Speaker, they are listed and printed for answer on the dates allotted to the Ministries to which the subject matter of the question pertains.

text: The normal period of notice does not apply to short notice questions which relate to matters of urgent public importance. However, a Short Notice Question may be answered only on short notice if so permitted by the Speaker and the Minister concerned is prepared to answer it at shorter notice. A short notice question is taken up for answer immediately after the Question Hour, popularly known as Zero Hour.

text: Zero Hour: The time immediately following the Question Hour has come to be known as "Zero Hour". It starts at around 12 noon (hence the name) and members can, with prior notice to the Speaker, raise issues of importance during this time. Typically, discussions on important Bills, the Budget, and other issues of national importance take place from 2 pm onwards.

text: Business after Question Hour[edit]

text: After the Question Hour, the House takes up miscellaneous items of work before proceeding to the main business of the day. These may consist of one or more of the following: Adjournment Motions, Questions involving breaches of Privileges, Papers to be laid on the Table, Communication of any messages from Rajya Sabha, Intimations regarding President's assent to Bills, Calling Attention Notices, Matters under Rule 377, Presentation of Reports of Parliamentary Committee, Presentation of Petitions, miscellaneous statements by Ministers, Motions regarding elections to Committees, Bills to be withdrawn or introduced.

text: Main Business[edit]

text: The main business of the day may be consideration of a Bill or financial business or consideration of a resolution or a motion.

text: Legislative Business[edit]

text: Legislative proposals in the form of a Bill can be brought forward either by a Minister or by a private member. In the former case it is known as Government Bill and in the latter case it is known as a Private Members' Bill. Every Bill passes through three stages—called three readings—before it is passed. To become law it must be passed by both the Houses of Parliament, Lok Sabha and Rajya Sabha, and then assented to by the president.

text: Financial Business[edit]

text: The presentation, discussion of, and voting on the annual General and Railways budgets—followed by the passing of the Appropriations Bill and the Finance Bill—is a long, drawn-out process that takes up a major part of the time of the House during its Budget Session every year.

text: Motions and Resolutions[edit]

text: Among other kinds of business that come up before the House are resolutions and motions. Resolutions and motions may be brought forward by Government or by private members. Government may move a resolution or a motion for obtaining the sanction to a scheme or opinion of the House on an important matter of policy or on a grave situation. Similarly, a private member may move a resolution or motion in order to draw the attention of the House and of the Government to a particular problem. The last two and half hours of sitting on every Friday are generally allotted for transaction of private members' business. While private members' bills are taken up on one Friday, private members' resolutions are taken up on the succeeding Friday, and so on.

text: Parliamentary Committees[edit]

text: Most of the business of drafting a bill or amendments are initially discussed and debated in the parliamentary committees. Since the time for legislation is limited, work of all departments of the government and any special focus tasks is delegated to the committees, wherein the committees shall prepare the initial draft of the bill / amendment for the consideration by both the houses. They consist of members from both the houses

text: There are primarily two kinds of parliamentary committees based on their nature -

text:
Parliament Standing Committees (PSC) - Permanent in nature, reconstituted time to time with every new election

Department based
Others

Ad hoc Committees - Created for specific purpose and ceases to exist when that purpose is achieved.

text: Half-an-Hour Discussion[edit]

text: A Half-an-Hour Discussion can be raised on a matter of sufficient public importance which has been the subject of a recent question in Lok Sabha irrespective of the fact whether the question was answered orally or the answer was laid on the Table of the House and the answer which needs elucidation on a matter of fact. Normally not more than half an hour is allowed for such a discussion. Usually, half-an-hour discussion is listed on Mondays, Wednesdays and Fridays only. In one session, a member is allowed to raise not more than two half-an-hour discussions. During the discussion, the member, who has given notice, makes a short statement and not more than four members, who have intimated earlier and have secured one of the four places in the ballot, are permitted to ask a question each for further elucidating any matter of fact. Thereafter, the Minister concerned replies. There is no formal motion before the House nor voting.

text: Discussion on Matters of Urgent Public Importance[edit]

text: Members may raise discussions on matters of urgent public importance with the permission of the Speaker. Such discussions may take place on two days in a week. No formal motion is moved in the House nor is there any voting on such a discussion.

text: Debate in the House[edit]

text: After the member who initiates discussion on an item of business has spoken, other members can speak on that item of business in such order as the Speaker may call upon them. Only one member can speak at a time and all speeches are directed to the Chair. A matter requiring the decision of the House is decided by means of a question put by the Speaker on a motion made by a member.

text: Division[edit]

text: A division is one of the forms in which the decision of the House is ascertained. Normally, when a motion is put to the House members for and against it indicate their opinion by saying "Aye" or "No" from their seats. The Chair goes by the voices and declares that the motion is either accepted or rejected by the House. If a member challenges the decision, the Chair orders that the lobbies be cleared. Then the division bell is rung and an entire network of bells installed in the various parts and rooms in Parliament House and Parliament House Annexe rings continuously for three and a half minutes. Members and Ministers rush to the Chamber from all sides. After the bell stops, all the doors to the Chamber are closed and nobody can enter or leave the Chamber till the division is over. Then the Chair puts the question for second time and declares whether in its opinion the "Ayes" or the "Noes", have it. If the opinion so declared is again challenged, the Chair asks the votes to be recorded by operating the Automatic Vote Recording Equipment.

text: Automatic Vote Recording System[edit]

text: With the announcement of the Speaker for recording the votes, the Secretary- General presses the button of a key board. Then a gong sounds serving as a signal to members for casting their votes. For casting a vote each member present in the Chamber has to press a switch and then operate one of the three push buttons fixed in his seat. The push switch must be kept pressed simultaneously until the gong sounds for the second time after 10 seconds. There are two Indicator Boards installed in the wall on either side of the Speaker's Chair in the Chamber. Each vote cast by a member is flashed here. Immediately after the votes are cast, they are totalled mechanically and the details of the results are flashed on the Result Indicator Boards installed in the railings of the Speaker's and Diplomatic Galleries.

text: Divisions are normally held with the aid of the Automatic Vote Recording Equipment. Where so directed by the Speaker in terms of relevant provision in the Rules of Procedure etc. in Lok Sabha, Divisions may be held either by distribution of 'Aye'/'No' and 'Abstention' slips to members in the House or by the members recording their votes by going into the lobbies. There is an Indicator Board in the machine room showing the name of each member. The result of Division and vote cast by each member with the aid of Automatic Vote Recording Equipment appear on this Board also. Immediately a photograph of the Indicator Board is taken. Later the Photograph is enlarged and the names of members who voted 'Ayes' and for 'Noes' are determined with the help of the photograph and incorporated in Lok Sabha Debates.

text: Publication of Debates[edit]

text: Three versions of Lok Sabha Debates are prepared viz., the Hindi version, the English version and the Original version. Only the Hindi and English versions are printed. The Original version, in cyclostyled form, is kept in the Parliament Library for record and reference. The Hindi version all Questions asked and Answers given thereto in Hindi and the speeches made in Hindi as also verbatim Hindi translation of Questions and Answers and of speeches made in English or in regional languages. The English version contains Lok Sabha proceedings in English and the English translation of the proceedings which take place in Hindi or in any regional language. The Original version, however, contains proceedings in Hindi or in English as they actually take place in the House and also the English/Hindi translation of speeches made in regional languages.

text: If conflicting legislation is enacted by the two Houses, a joint sitting is held to resolve the differences. In such a session, the members of the Lok Sabha would generally prevail, since the Lok Sabha includes more than twice as many members as the Rajya Sabha.

text: Officers of Lok Sabha[edit]

text: Speaker and Deputy Speaker

text: As per Article 93 of Indian Constitution, the Lok Sabha has a Speaker and a Deputy Speaker. In the Lok Sabha, the lower House of the Indian Parliament, both presiding officers—the Speaker and the Deputy Speaker- are elected from among its members by a simple majority of members present and voting in the House. As such, no specific qualifications are prescribed for being elected the Speaker. The Constitution only requires that Speaker should be a member of the House. But an understanding of the Constitution and the laws of the country and the rules of procedure and conventions of Parliament is considered a major asset for the holder of the office of the Speaker. Vacation and resignation of, and removal from, the offices of Speaker and Deputy Speaker is mentioned under Article 94 of the Constitution of India. As per Article 94 of Indian Constitution. A Speaker or a Deputy Speaker, should vacate his/her office, a) if he/she ceases to be a member of the House of the People, b) he/she resigns, c) removed from his office by a resolution of the House of the People passed by a majority.

text: The Speaker of Lok Sabha is at once a member of the House and also its Presiding Officer. The Speaker of the Lok Sabha conducts the business in the house. He/she decides whether a bill is a money bill or not. He/she maintains discipline and decorum in the house and can punish a member for their unruly behaviour by suspending them. He/she permits the moving of various kinds of motions and resolutions like the motion of no confidence, motion of adjournment, motion of censure and calling attention notice as per the rules. The Speaker decides on the agenda to be taken up for discussion during the meeting. It is the Speaker of the Lok Sabha who presides over joint sittings called in the event of disagreement between the two Houses on a legislative measure. Following the 52nd Constitution amendment, the Speaker is vested with the power relating to the disqualification of a member of the Lok Sabha on grounds of defection. The Speaker makes obituary references in the House, formal references to important national and international events and the valedictory address at the conclusion of every Session of the Lok Sabha and also when the term of the House expires. Though a member of the House, the Speaker does not vote in the House except on those rare occasions when there is a tie at the end of a decision. Till date, the Speaker of the Lok Sabha has not been called upon to exercise this unique casting vote. While the office of Speaker is vacant due to absence/resignation/removal, the duties of the office shall be performed by the Deputy Speaker or, if the office of Deputy Speaker is also vacant, by such member of the House of the People as the President may appoint for the purpose.

text: Shri G. V. Mavalankar was the first Speaker of Lok Sabha (15 May 1952- 27 February 1956) and Shri M. Ananthasayanam Ayyangar was the first Deputy Speaker of Lok Sabha (30 May 1952 – 7 March 1956). In the 16th Lok Sabha, Sumitra Mahajan was elected as the speaker on 3 June 2014, and is its second woman speaker and Shri M. Thambidurai as the deputy speaker.

text: The Lok Sabha has also a separate non-elected Secretariat staff.[13]

text: Composition by states and territories[edit]

text:
Subdivision
Type
No. of constituencies[14]

Andaman and Nicobar Islands
Union Territory
1

Andhra Pradesh
State
25

Arunachal Pradesh
State
2

Assam
State
14

Bihar
State
40

Chandigarh
Union Territory
1

Chhattisgarh
State
11

Dadra and Nagar Haveli
Union Territory
1

Daman and Diu
Union Territory
1

National Capital Territory of Delhi
Union Territory
7

Goa
State
2

Gujarat
State
26

Haryana
State
10

Himachal Pradesh
State
4

Jammu and Kashmir
State
6

Jharkhand
State
14

Karnataka
State
28

Kerala
State
20

Lakshadweep
Union Territory
1

Madhya Pradesh
State
29

Maharashtra
State
48

Manipur
State
2

Meghalaya
State
2

Mizoram
State
1

Nagaland
State
1

Odisha
State
21

Puducherry
Union Territory
1

Punjab
State
13

Rajasthan
State
25

Sikkim
State
1

Tamil Nadu
State
39

Telangana
State
17

Tripura
State
2

Uttarakhand
State
5

Uttar Pradesh
State
80

West Bengal
State
42

text: Lok Sabha general elections[edit]

text: Lok Sabha is constituted after the general election as follows:

text:
Lok Sabha
General Election

1st Lok Sabha
Indian general election, 1951–52

2nd Lok Sabha
Indian general election, 1957

3rd Lok Sabha
Indian general election, 1962

4th Lok Sabha
Indian general election, 1967

5th Lok Sabha
Indian general election, 1971

6th Lok Sabha
Indian general election, 1977

7th Lok Sabha
Indian general election, 1980

8th Lok Sabha
Indian general election, 1984

9th Lok Sabha
Indian general election, 1989

10th Lok Sabha
Indian general election, 1991

11th Lok Sabha
Indian general election, 1996

12th Lok Sabha
Indian general election, 1998

13th Lok Sabha
Indian general election, 1999

14th Lok Sabha
Indian general election, 2004

15th Lok Sabha
Indian general election, 2009

16th Lok Sabha
Indian general election, 2014

text: Number of members by party in Lok Sabha[edit]

text: Currently elected members of 16th Lok Sabha by their political party (As of 18 December 2017):[15]

text:
Alliance
Party
Seats

National Democratic Alliance
Seats: 334
Bharatiya Janata Party
274

Shiv Sena
18

Telugu Desam Party
16

Lok Janshakti Party
6

Shiromani Akali Dal
4

Rashtriya Lok Samta Party
3

Apna Dal
2

Janata Dal (United)
2

Jammu and Kashmir Peoples Democratic Party
1

All India N.R. Congress
1

Naga People's Front
1

National Peoples Party
1

Pattali Makkal Katchi
1

Sikkim Democratic Front
1

Speaker of the House, BJP
1

Nominated Anglo-Indians, BJP
2

United Progressive Alliance
Seats: 50
Indian National Congress
46

Indian Union Muslim League
2

Kerala Congress (M)
1

Revolutionary Socialist Party
1

Janata Parivar
Seats: 6
Rashtriya Janata Dal
2

Indian National Lok Dal
2

Janata Dal (Secular)
2

Other Parties
Seats: 144
All India Anna Dravida Munnetra Kazhagam
37

All India Trinamool Congress
33

Biju Janata Dal
20

Telangana Rashtra Samithi
11

Communist Party of India (Marxist)
9

YSR Congress Party
9

Nationalist Congress Party
6

Samajwadi Party
5

Aam Aadmi Party
4

All India United Democratic Front
3

Jharkhand Mukti Morcha
2

All India Majlis-e-Ittehadul Muslimeen
1

Communist Party of India
1

Jammu & Kashmir National Conference
1

Swabhimani Paksha
1

Jan Adhikar Party (Expelled RJD Member)
1

Independents

3

Vacant Seats
Anantnag, Ajmer, Uluberia, Alwar, Araria, Phulpur, Gorakhpur and Bhandara–Gondiya constituencies.
8

Total

545