"There is danger from all men. The only maxim of a free government ought to be to trust no man living with
power to endanger the public liberty." - - - - John Adams

Thursday, November 12, 2015

GOP debate ignores inflation - What else is new

Both Parties Debase the Currency
Handing out "free" Federal goodies requires 
endless money printing by both parties.

By Gary;

The McDonalds' dollar menu is gone.

Just a couple of years ago McDonalds was kicking ass in the fast food world with $1 double cheeseburgers. Today that same burger runs $1.59 or so.

Even in the public school I attended the math adds up to about a 59% inflation over a short span of time.

But the government says there is near zero inflation in the economy. Right. The same government statistics that say unemployment is down with 95 million people not working and 50 million on food stamps.

The latest Republican debate ignored inflation yet again. (Not that the Democrats talk about it either.) Rand Paul briefly mentioned the Federal Reserve and moved on.

None of the candidates really care, but the moderators asking the questions didn't even bother to ask the question. Both Big Government parties want money printing. They need to buy votes ever two years.

Wage Inflation  
There was no minimum wage in 1915, except in a few states experimenting with it, and only for women and children. (The federal minimum wage wouldn't be enacted until 1938.) At a hearing in March 1915, Dorothy Miller told a state minimum wage committee in Albany, New York, that she made $6 a week, which came to $312 a year

Out of that $6, she paid her parents $2.50 a week for room and board. According to The New York Times, she told the committee: "After I paid my actual necessary expenses every week, I had 40 cents left for clothes and amusements. And I was the envy of all the girls I worked with."

Today incomes are higher, but do your dollars buy any more than in 1915? People might "own" more material items these days (is that wealth?), but the word own is the key. Much of what we think we own is bought on credit, a system that largely did not exist in 1915. 

Are we richer than folks in 1915? For many people much of their yearly income is spent servicing their debt to banks for the right to own consumer goods. Is this wealth? You decide.

Gold, once selling for $35 an ounce, is not increasing in value.
Gold is effectively holding steady. It is paper money that is losing its value.

Housing Inflation 
In 1915 purchasing a home was affordable. The average home price was $3,200 according to Census records. 

By the 1960s the median home price had inflated to $11,900. Today it had inflated to $177,000 nationally.

Food Inflation
According to Miller, the woman who was paid $6 a week, she bought her lunch for 15 cents.

The Census Bureau says typical food costs in 1915 were:

  • Bread                   7 cents    --------- up to 25 cents in the 1960s
  • Dozen eggs        34 cents    --------- up to 55 cents in the 1960s
  • Pound of steak   26 cents    --------- up to 89 cents in the 1960s

Figure in today's prices on these same items and you can see that inflating the money supply is roaring along just fine.

Don't plan on the politicians addressing this issue. They are always looking to buy votes for the next election.

(US news.com)      (The people history.com)

The politicians rig the numbers to say there is zero inflation (red line above). Like unemployment number the statistics are government created lies. The blue line uses the methodology which was employed prior to 1980.
See shadowstats.com

Real Unemployment is 23%

The seasonally-adjusted SGS Alternate Unemployment Rate reflects current unemployment reporting methodology adjusted for SGS-estimated long-term discouraged workers, who were defined out of official existence in 1994. That estimate is added to the BLS estimate of U-6 unemployment, which includes short-term discouraged workers.

The U-3 unemployment rate is the monthly headline number. The U-6 unemployment rate is the Bureau of Labor Statistics’ (BLS) broadest unemployment measure, including short-term discouraged and other marginally-attached workers as well as those forced to work part-time because they cannot find full-time employment.

1960s food prices

I'll take two at this price

And the endless printing of money goes on and on.

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