OP/ED | 7/29/2013 @ 8:00AM |1,698 views
Gold Defined Money And Monetary History At The Cato Institute: A Velvet Underground Event?
Ralph Benko, Contributor
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“Since the end of convertibility in 1971, average real wages per hour of work in the United States have been stagnant. Average annual American economic growth since 2000 has been about half the average annual real growth of the previous two American centuries. The real purchasing power of a 1971 dollar saved in the bank, adjusted by the CPI, has declined to a value of about 15 cents. That is to say, the price level has risen from 1971 to 2013 by about six-fold, a rise unparalleled in the history of the American Republic. In a word the American middle class, relatively speaking, has been gradually dispossessed.
“The consequences of the collapse of real money worldwide are still unfolding. But let it be said that only one century of post-World War I financial disorder has been written.
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One can quibble about exactly how much a dollar has shrunk!
Personally, I’d suggest 30¢ for a gallon of gas in 1964 versus $4 on 2013 equals 92.5% loss of value!
Put it another way, a 13 fold increase in the price level.
No wonder an 8$ minimum wage doesn’t look good!
Retirees, the poor, the wage slaves, and anyone with savings is getting royally <synonym for the past tense of the procreation act> !
Convert currency and dollar denominated assets into things the Gooferment can’t print!
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Posted by reinkefj 
