Economic Outlook: Government Created Inflation

Government created inflation has hit working people hard during the past decade, with inflation eating away at the real value of the dollars in your pocket.

| January/February 1978

  • Government created inflation keep our earning wages down.
    Government created inflation keep our earning wages down.
    Photo By Fotolia/Maksym Yemelyanov

  • Government created inflation keep our earning wages down.

This government created inflation hits working folk hard, a good reason to strive for economic self-sufficiency.

By late 1977 the Consumer Price Index — stated in 1967 dollars — was 184. Which means that your take-home pay hadn't even kept pace with the government created inflation if you weren't earning at least $184 in late 1977 for every $100 you earned in 1967 (only ten years before).

Of course, those are just the official figures . . . which, somehow, always seem to make things appear better than they really are. And which completely disregard all the additional taxes you paid in 1977 that you didn't pay in 1967. And which conveniently glosses over the fact that handling more dollars (even if those dollars represented less real wealth) kicked you into a higher tax bracket in 1977 than you were in In 1967 . . . even If the overall income taxes had stayed the same. And which in no way reflects all the other devious little manners in which government created inflation has hurt you during the past decade.

MORAL: There ain't no free lunch and there's no such thing as "federal money". As long as we all maintain the polite fiction that our President and Congress can "vote" money for this multi-billion-dollar program and that trillion-dollar giveaway — as long as we continue to allow our politicians to "pay" for grandiose social schemes with printing press currency — inflation will continue right on eating away at the real value of the dollars in your pocket.

Would you like to stop that robbery? Would you like — once again — to be able to trust the U.S. dollar . . . to know that a dollar laid away today will still buy the same amount of goods In 10 or 20 or 100 years as it buys now? Easy. Make it impossible for our politicians to spend money the government doesn't have. Shut down the printing press economy and put this country back on the gold standard. That's all It'll take to make the criminals in Washington honest once again . . . which, of course, is why they're all so dead set against it.

Many times, over the past two and a half years, this column has stated that — good times or bad, through inflations or deflations — you're far better off putting your trust in real wealth that you can have and hold, instead of paper promises (printing press "money", Insurance policies, annuities, pensions, stocks, bonds, etc.); issued by a government or some large corporation. Unlike so many others who comment on the passing financial scene, however, this column has never advised anyone to put all of his or her excess purchasing power into just gold and/or silver. Rather, MOTHER has always suggested a somewhat more sophisticated (though very easily obtainable) investment in real wealth:

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