Inflation! . . . .a hidden TAX? . . . You can “Be Sure!” that is what it is. . . .
November 22nd, 2008 @ 01:10
Posted by: John Whipple Sr.
I asked 25 people on the street “What is inflation?”
I had 8 that said, “I’m not sure”,
which Judge Judy would say, “What that really means is you don’t know, but, you just don’t want to appear ignorant”.
I had 4 more that said, “It is when things cost more” and when I asked why? I was told “They aren’t sure”.
I had 6 more that said, “It happens because of the economy”, I said, Oh really?. . .why?”. . . . .They said, “I’m not sure.”
Each of the 7 left began a complicated explanation about how money becomes worth less. I asked, How does that happen?. . . .and guess what?. . . . .they weren’t sure.. . .
I never did get a complete simple answer except for those that blamed it on free trade, the stock market and then foreign countries.. . . .and then confessing that they “weren’t sure.” And then there was one that seemed to be convinced that it was “Greenspan” that caused it.
Well then. . . . .What is it?
It is in simple when the government spends money for something that it doesn’t get anything back for and then the people have to pay for it again. . . .kinda like a hidden tax. The “economy” is the benefit to all by pooling all the people’s creativity . . . .did we forget that?
Taxes should be the best bargain you get in a Democracy and this is the reason that it is the best type of Government so far. Money is only a measurement of creativity and it should represent the same value year after year plus gain ground as technology advances the creativity making it a better country for all.
If we understood this we would realize that bail outs are only robbing Peter to pay Paul and you can’t get anything Democratic out of that although there are some people that think we can. Jobs that only create a paycheck sounds good on the surface especially when it is your paycheck, but, you have to remember those dollars were a measurement of “real” creativity that represents our country
and if we had enough of that we would not have to fight other countries to be like us.
And my last word on this is, “You can’t get to a positive place on a negative path. . . .It doesn’t go there. . . .
November 24th, 2008 22:45
True, but government spending is but one of many causes for inflation.
November 24th, 2008 23:47
Here’s a chart. http://inflationdata.com/inflation/images/charts/Annual_Inflation/Annual_Inflation_chart.jpg
Look at the blue line which shows one view of the average long term trend. The trend for almost 20 years has been either side of 3%.
Instead of rising inflation, the worst thing would be overall deflation and that’s a much more likely possibility. At that point companies don’t risk creating because what they create today is worth less tomorrow. Consumers don’t buy today because it will be cheaper tomorrow.
If we get a taste of deflation (depression)people will be standing around in soup lines reminiscing about the good ole’ days of inflation.
November 25th, 2008 10:40
There is the truth of virginity and the truth of passion, the truth of wealth and of poverty, of thrift and of profligacy, of carelessness and abandonment and there is the truth of whether or not we are peeing into the tent or peeing out of the tent. . . It’s going to make a difference!
Wow. . . That is powerful stuff!