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 Replies: 27 / Views: 3,943 |
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Valued Member
 175 Posts |
Is that why so many americans live off welfare?
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Rest in Peace
United States
9104 Posts |
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The simple evidence shows that Americans had a higher standard of living after 1913. Perhaps true, but how much of that came because of inflation that simply passed the costs to the future? For example, we have a highway and bridge system that is far superior to fifty years ago. Only problem is it's falling apart big time, and we don't have the money to fix it. Why not? Because we built it with printing press money, and we now have to pay $1 for a dime loaf of bread, and don't have that other 90 cents to use for bridge repair. |
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Rest in Peace
United States
9104 Posts |
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Typically, there is very little inflation under a hard money system. Look up the US inflation amount from 1813-1913 Prices dropped about half. http://www.westegg.com/inflation/I like 1800-1934 (In gold we trust). Prices dropped 21.5%, or about 0.16% a year. |
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Rest in Peace
United States
9104 Posts |
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People living on fixed incomes can be devastated by inflation that those who are working and pretty much shrug off. Some retirements and SS have an inflation (COLA) adjustment built in. The new problem is that the new way the gubmint calculates this, it says "yeah, scalloped potatoes went up 50%, but there was no change in turnips, so you can eat them instead, and your food cost didn't increase." I didn't sign on to eat turnips, KWIM? |
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Rest in Peace
United States
9104 Posts |
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The simple evidence shows that Americans had a higher standard of living after 1913. Like during the depression? "Higher standard of living" is another way of saying "it costs less to live as well". The two examples above illustrate this. So does being able to buy a laptoy today with hundreds of times the ability than a desktop 20 years ago. The problem is that today, lots of basic stuff costs a lot more than it used to, because of inflation. Like a new Cadillac that used to cost $2500. |
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Rest in Peace
United States
9104 Posts |
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Is that why so many americans live off welfare? Because they can. If they had to do basic city work at minimum wage to get their money, they'd go find real jobs. It doesn't take an engineering degree to run a garbage truck. |
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Pillar of the Community
United States
667 Posts |
I still don't see that we would be better of with a gold standard. When you look at the full equalization sure price held or at least where more stable. However people could not afford to buy them. There are more factors that just inflation and the desire to go to the gold standard.
In our rural township during this time few people had money and most people bartered.Few people had money and those that did where wealthy landowners.
Sure the great depression took place later and while it was bad, very bad still 75% of the population had jobs. My father as a young boy spent a full year living in a tent.
However there were depressions in 1807 - 1814, 1837 - 1844, 1873 - 1879 and 1893 - 1898. Of the 13 worst recessions, depression or panics in the US only 4 have taken place since 1913.
Welfare was start by FDR in the US in the 1930's. Though Germany's Bismark gets the credit for starting the first modern welfare system.
Strangely enough is that the US tried to adopt a welfare system in 1893 for unemployment payments but never got off the ground in the US.
I just don't see the clear answer you all have for the gold standard when it comes to my everyday life. I know the wealthy will sure love it because they did much better with the gold standard in place.
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Valued Member
United States
302 Posts |
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It doesn't take an engineering degree to run a garbage truck. But garbage truck drivers have been promoted to sanitation engineers. Don't all engineering jobs require degrees?  |
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Pillar of the Community
United States
4008 Posts |
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I understand this but I fail to see why it was a benefit. As late as the year 1900, most industrial workers in the United States still worked a 10-hour day (12 hours in the steel industry), yet earned from 20 to 40 percent less than the minimum deemed necessary for a decent life. Changes such as this has nothing to do with whether or not there was a gold standard and everything to do with unionization. If we want to look back even further, we can say that medieval people worked 16-18 hours a day 6 days a week just to get enough food to eat. While not a great life, it was better than the lives of those who did not get enough food to survive. What was that famous quote about life way back when... it was "nasty, brutish, and short". Yes, times have changed and life IS generally better today but I seriously doubt that it was the adoption of paper currency that made it so. |
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Pillar of the Community
United States
4008 Posts |
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I like 1800-1934 (In gold we trust). Prices dropped 21.5%, or about 0.16% a year. Yes, that would qualify as "very little inflation".  On the other hand, perhaps it was periods like that which traumatized Bernanke? Isn't he the guy who is so terrified of deflation? I agree that deflation is bad if you have no money. For people who do have money, deflation is excellent because they can buy more goods and services for less money. Quote:
Some retirements and SS have an inflation (COLA) adjustment built in. The new problem is that the new way the gubmint calculates this, it says "yeah, scalloped potatoes went up 50%, but there was no change in turnips, so you can eat them instead, and your food cost didn't increase." Yes, there is such a thing as a COLA but the government seems to have found ways not to pay it these days. I agree that their funny numbers on inflation do not come anywhere near describing the actual cost of living these days. If we just use the accepted government method for calculating inflation from 10-15 years ago, we see that inflation is not the 2.5-3% that they claim but is actually in the 10-11% area. They cook the books on the unemployment numbers too, so at least they are consistent.  Quote:
The problem is that today, lots of basic stuff costs a lot more than it used to, because of inflation. Like a new Cadillac that used to cost $2500. Right on, Fredd... which is why my Caddie is a 1999 model and not a much newer one. Of course, the number of gold coins required to buy that $2500 Caddie way back when would probably STILL buy their newest top of the line model today... with a big chunk of change to spare! Quote:
Because they can. If they had to do basic city work at minimum wage to get their money, they'd go find real jobs. Which is exactly why society should offer a hand up and not a hand out to those who need some temporary help. The question then becomes, "OK, so how badly do you need some help?". People willing to trade some effort for help really do need it. |
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Rest in Peace
United States
9104 Posts |
One day, dad dropped me off to cut grass in a 59 Pontiac. A strange car picked me up, about a five year old 62 Caddy that he paid $1700 for.
About ten years later, we saw the same year, same model, same color on the same dealer's lot. $1700.
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Pillar of the Community
United States
4008 Posts |
I can see it now, Fredd... Cadillac currency! THE way to fight inflation. |
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Replies: 27 / Views: 3,943 |
First Page
Posted 09/10/2011 10:43 pm
