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Never Meet Your Heroes Part II John Stossel, Doesn’t Understand Inflation, Sigh!

March 11, 2017

FWQ: The wage is meaningless unless you address inflation.

John Stossel: That is not true. The exact amount in dollars may vary, but that will be true both for the employee’s productivity and his pay, in exact synchrony.

FWO: Since the Fed, the dollar has declined to .02 of what it was in 1913. So despite productivity increasing, the real value of purchasing power is decreased. Ron Paul described this in detail. So if I increase the wage to 10.00 an hr, in 1913 that would be 245.29 an hr using the us inflation calculator. That is my point, John. Just like the Weimar Republic where people rushed to buy goods before the prices changed. Unless you have currency backed by something. Or an exchange of value for labor for goods and services that is fixed or sustainable. Wages and prices will be unstable, and what you get in return for your work or skill will be less than what you get back. There is no free market with a central bank or paying a tax for every dollar in circulation. A free market is an even exchange. Debt violates free market principles because it makes everyone a servant to the lender. Usury was banned in the Bible for this reason. The dilemma is as ancient as the dawn of mankind. I’m not sure we disagree. In theory in a free market, you are correct. But we do not have a free market, a free currency, let alone free trade, devoid of regulation and political micromanagement. As practiced the free market ideal does not exist. It should work if we ever bothered to try it. I appreciate your insight. And agree with you in principle.

John Stossel did not respond… Sad. If you are going to make an argument, why not defend it?

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