The Campaign for Liberty writes: “This is what the Fed has done to American money.”
The greenback has lost most of its purchasing power since the inception of the Federal Reserve System. As the chart below shows, when the Fed was instituted, the dollar was actually worth $1. Today, that has collapsed more than 90 percent to just a few cents. Yikes!
Unfortunately, the likes of Bernie Sanders doesn’t talk about this stuff, and neither do any of his socialist worshippers. They ignore the Fed and all of its contributions to supposed income inequality, banker bailouts, the booms and the busts and the significant devaluation of the dollar.
Here is what economist Ludwig von Mises wrote:
“How long can a central bank continue an inflation? Probably as long as people are convinced that the government, sooner or later, but certainly not too late, will stop printing money and thereby stop decreasing the value of each unit of money. When people no longer believe this, when they realize that the government will go on and on without any intention of stopping, then they begin to understand that prices tomorrow will be higher than they are today. Then they begin buying at any price, causing prices to go up to such heights that the monetary system breaks down.”
The renowned economist later adds:
“Under a gold standard, sound government has a much better chance; its leaders can say to the people and to the politicians, “We can’t do it unless we increase taxes.” The gold standard is a form of protection against spendthrift governments.”
The U.S. dollar is already gradually being replaced by other fiat hegemonies. It’s time to end this fiat experiment and bring back sound money. Let’s return to the phrase: “good as gold.”
Essentially, an average good/service that cost $1 in 2009, used to be priced at 4.9 cents in 1913. In other words, the average price level of goods/services increased by 1930% since 1913. True, but guess what, average earned income increased by 6560% during the same time period. Average earned income rose from $740/yr in 1913 to $49,300/yr in 2006. Adjusting for inflation, $740/yr in 1913 is $15,000/yr in 2006 dollars. Average incomes, not only kept pace, but beat price inflation by 230%.
Also, many things like electronics have continued to drop in price. I purchased a 40″ HDTV for $269, 12 months ago, that I can even connect my laptop and watch programs for free off the internet or stream HULU or NETFLIX wireless to my $53 Samsung BLU-Ray player. 40 years ago, you could not buy anything close in picture quality or size that cheap. I remember paying $399 for a 27″ Sony color TV back in the 1980s.
I like my inflated paycheck dollars and what they can buy today.
You have to be a smart consumer and watch every purchase to come out ahead.
Remember LIES, DAMNED LIES and STATISTICS!
JPRATT
Your view i extremely self centered and flawed. First you HAVE an inflated paycheck (apparently), where many other may not. Secondly, you fail to consider that the “”new jobs” are primarily service oriented, and relegated to the lies of Walmart, Mickie D’s and the like. Thus, you “analysis”, fails to consider the failure of these occupations to provide “inflated paychecks” to compensate for the wealth destruction brokered at Breton Woods, by the Government and the financial cartel.
The clear evidence in the chart above undeniably provides irrefutable proof that enacting the Fed only helped the Government institute a system of undisclosed taxation, which the proliteriate is blind to, and wwhich also exclusively benefited the financial companies
I said the dollars were inflated. My wife and I live very nice on $19,644 per year, retired in Montana. We have a 30 year old mobile home. Lot Rent-$336, Gas and Elect-$90, Insurance- life ,auto, home-$160, Cable internet and phone-$60, Hulu, Netflix-$21, Taxes-$20. I have always been able to live well on the income I have available. I have $500 per month left after all my needs are met. I raised 4 children from 1978 to 2009 on from $8,200 to $35,000 per year, all on a High School Education, with Electronics Technical School.
You fail to realize that each individual has to be responsible for where they are in life. I cannot do anything about the FED, Government corruption, etc. But, I know plenty of people who are doing well despite the challenges of this corrupt world.