Wages Vs. Inflation: What’s Left Out
Devauation of dollar in 1913, the inception of the Federal Reserve
1917, America involved in WWI.
What used to cost $1.00, now costs $1.29
1928 year before Great Depression
1930, 1st year of Depression
1933, US Bank holiday
1941, before America involved in WWII
1946, post WWII
1954, post Korea
1971, Nixon goes off Gold Standard
1975, leaving Vietnam
1980, Reagan wins
1984, Reagan wins
1988, HW Bush wins.
1990, Gulf War
1992, Clinton wins
1996, Clinton wins
2000, W. Bush wins
2002, Post 911, GWOT
2004, W. Bush wins
2008, Obama wins
2012, Obama wins
Rate of Inflation: 2294.1 %, since the inception of the Federal Reserve in 1913, to eliminate… Inflation, bank failures, and financial crashes and panics…
Inflation by the decade…
14 recessions/depressions since 1913, and the inception of the Federal Reserve System.
Unemployment rate 1920-2014
The problem with most arguments for a living wage or minimum wage hike is that they are decoupled from one crucial point, the value of the money that you earn.
They can raise the minimum wage to literally any number… But that still doesn’t mean you are getting the same purchasing power for your wage. In fact, if anything you are buying less after working more…
The wage doesn’t reflect the cost of health care, in co-pays, nor the expense of uniforms and materials you are expected to pay for. Child care. Transportation costs. Food costs. Utility cost, etc.
Those expenses are subject to market forces. And are fixed. You have to pay them.
Actually for things like health care, costs is dictated not by the market, but by fiat, through government diktat.
The Obamneycare bill didn’t allow you the option to bargain for health insurance, it gave you official providers that were approved by the government, state and federal. Utilities are similarly affected by government regulations that can inflate the cost, or deflate the cost, to create artificial scarcity.
Again, it has nothing to do with the amount of money you make, or how much you work.
The money you are given at any time is basically a receipt for a certain amount of value. And more than likely that value is decreasing. By the amount of receipts printed, and resources available.
If there are more receipts chasing goods and services, the market has to take more of them, for value. If there are less, then the receipt is too valuable, and the goods are too scarce, and you have to pay more for less volume, than you received before.
Either you pay more money for crappy goods and services, or pay more money for goods and services with artificially higher demand.
But never at any given time are the same amount of money, chasing the same amount of goods and services.
So basically you work to get a ticket to the lottery. Sometimes you win x amount of goods and services, sometimes you win less, and sometimes, you lose even that right to goods and services, if the bank closes, and access to money is cutoff, as what happened in the bank holiday of 1933.
You need competition in wages to keep the wages competitive…. do you not? So why do you then NOT need competition in the money supply? Doesn’t there have to be both to create an equilibrium?
In order to preserve value for the dollar, don’t you have to introduce an alternative means of value and wealth? So one cannot increase and decrease irrespective of the amount of goods and services chasing the value of money?
The only way to kill inflation is to legalize competition of currency.
It literally does not matter how low or how high you make the wages by fiat, if the value of that currency is not regulated and it’s value not protected.
Debt based currency, always leaves you with debt to pay the tax of the currency itself…
Ironically Hitler of all people escaped this cycle through placing the value of the currency against the value of the German worker.
The value on production and dependence on the German worker led to public works projects, not unlike FDR and his WPA. But where FDR focused on busy work, and pulling weeds, Hitler gave his workers SKILLED positions to create useful products to market and for Germany, it created a NEED for labor, a NEED to create skilled, rather than unskilled labor, and allow the value created by the worker, to afford them higher wages, and subsidies paid for by government to increase their quality of life.
Like Gadhafi in Libya, transportation was a right, and the automobile was made affordable for every worker. Health care was a right, as the first anti smoking campaign in history came from Germany. Leisure trips overseas were paid for by the government to reward the German worker for his value and contribution. As a result unemployment disappeared in a matter of years.
If anything Hitler showed the model for our current state run economy. but instead of turning the fruits of the people’s labor to be invested in the people, the fruits of the people’s labor in our modern economy, is being re-invested BACK to the property owners and their government cronies.
In Germany, the people created the wealth and received it back, along with appreciation from government to keep them, healthy, and happy, and motivated to work.
In America, you have a race to the bottom, where you are either highly skilled in scarce positions of supremacy. And are richly compensated for it. Or you are made to compete against unskilled people like yourself, and live on the dole, and even now, you must submit to unpaid labor to stay on the dole, as you are also expected to pay for the cost of your welfare, your labor, and housing, and food, and health care, etc, etc, etc…
Gadhafi used the wealth of his people to grant his people a home, transportation, and universal access to health care anywhere in the world.
He like Hitler chose to remove his people from the debt slavery of usury to the International bankers…
Even Christians are supposed to be against Usury…
What are these figures of history trying to tell you…
What are educated people telling us now…
America, your time has come, to clean up your own back yard…