Why Inflation Increases Inequality: Although the government often promises to distribute printed money to the poor, inflation is extremely regressive.
#BTEYE PROBLEM CHILD 1990 720P FREE#
The answer is simple: the government has propped up these sectors and prevented the free market from acting efficiently. You may be asking yourself why medical services, housing and university costs are getting so expensive, despite the fact that technology seems to make everything cheaper. Having such a large and fiscally-irresponsible force in the market leads to a gross misallocation of resources. GDP was comprised of government spending. Why Inflation Is Bad For The Economy: Inflating the money supply allows the government to spend money that it has not earned and exert an ever-growing influence on the public markets. The government won’t stop printing because it can’t. We have become so indebted and addicted to these government handouts that any slowdown of the infamous printer could lead to a collapse of the entire economy. With these newly-created dollars, the government is able to prop up politically-favored sectors and make fiscally-irresponsible promises to win votes. Why The Government Won’t Stop Printing: By having the sole right to print money, the government is able to create something out of nothing and play god in the economy. To put it simply… the more the money printer goes brrr, the higher the inflation. The Cause Of Inflation: Although the Federal Reserve will often use words like “transitory” or “quantitative easing” to confuse the public, the record high inflation rates are a direct result of the expansion of the money supply. Although it is uncertain what the exact rate is, it has clearly been greater than 10% annually since the beginning of the COVID-19 pandemic. However, if you have been looking to buy a home or a used car, inflation for you may have been much worse. If, instead, you measured inflation using the 1980s CPI basket, you arrive at 14%. Using this metric, you could estimate an inflation rate of 18% annually. Over the last two years, the number of circulating dollars has increased by 40%. The problem is that the government has made it incredibly hard to reliably calculate this information. The Real Inflation Numbers: For anyone who has looked at prices recently, it is clear that the government-reported 6.2% inflation rate is a gross underestimation. It is the theft of your most precious asset… time. Since money is the way that we value human time, inflation of the money supply is government-sponsored theft. By lowering the purchasing power of your hard-earned dollars, inflation means that you must continuously spend more time working to purchase the same amount of goods.
However, this definition hides a much more sinister truth. What Inflation Is: Economists will tell you that inflation is a sustained rise in prices. With hyperinflation ravaging the economy, crime exploded, poverty became the norm and rebellion began. Paper bills became so useless that they were burned as a cheaper alternative to firewood. By November of 1923, the price of a loaf of bread was 200 billion marks. Hyperinflation soon followed and prices ran out of control. Ten years later, in an attempt to pay back enormous wartime debts, the government began to print German marks. With a booming export business, Germany was one of the world’s wealthiest nations. Just over 100 years ago, in 1913, Germany’s economy was thriving. History Lesson: History doesn’t repeat itself, but it does rhyme. Now, more than ever, is a good time to clarify what inflation is, why it is never a good thing and what you can do to protect yourself. Today, the U.S government is $29 trillion dollars in debt and inflation is at its highest rate in over 30 years. Over the course of history, dozens of once-prosperous nations have collapsed under the pressure of hyperinflation. The greatest trick the government ever pulled was convincing the world that inflation was a good thing.
0 kommentar(er)
