Article / Inflation / Dylan Eleven

Inflation

The government uses the worry of inflation to keep us down, yet they dont really care that despite their monetary policy to restrict inflation, their justification of rate hikes and suppression of the economy, wages have dropped, and prices have gone up. Exactly the opposite of what they said they are trying to do. The reality of the matter is that inflation can be a bad thing, if it out paces earnings; The government will tell stories of out of control inflation such as in Germany during the world wars. A person who walked into a restaurant with enough money to pay for their meal, by the end of the meal due to out of control inflation, did not have enough to pay for the bill. Money was being recalled and instead of re printing, they simply stamped a different amount on the bills. The government says that they are afraid of this and use techniques to restrict the growth of the economy. If they feel the economy is doing well, people are making money and have more money in their pockets to save or spend. The government steps in and uses several different means to turn the booming economy around, to slow it down. For example they will raise interest rates to make us pay more for our mortgage and credit bills. This means we have less money in our pockets at the end of the month, less to spend, less to save, thus slowing down our spending and savings, slowing down the economy. The problem is that we have less money because of it. They could easily place a law to restrict the prices of things rather than restricting the money we have. They dont however not because it would not work, but to keep us down. We are far from the inflationary troubles of Germany in the past, but instead are kept increasingly poorer by the government and their policies. The reality is that despite their alleged efforts to keep inflation down, prices have increased tremendously and wages have come down. The wages have come down due to the restrictions on the economy enforced by the government. So their lies have worked for them but not for us. They have done the exact opposite of their stated goals. In 1988 the cost of a movie was $6.00 and the average wage for someone working at the movie theatre was $8-$12 dollars per hour. A person working could go to see a movie 2 times for one hours work. In 2004, the cost of a movie is $12-$14 dollars and the average wage of a movie theater employee is $7-$8 dollars per hour. So a person has to work for 2 hours to go 1 time to see a movie, a complete reversal. Yet inflation is low, 1ÓÀstated by the government. But the reality is wages are down and prices are up. The exact problem of inflation is upon us, with low inflation numbers. We are suffering needlessly due to the governments desire to keep us down. They are lying to us and dont care one bit about it.


About this entry