Inflation
Inflation
What is inflation?
Economics isn’t everyone’s cup of tea. In fact very few people even understand basic economics, much less a broad grasp of different economic views. However, everyone feels inflation when it’s has risen 7%, the highest rate in decades. Especially the poor and middle class.
Prices rise on gas, groceries, entertainment, vehicles, and services rise. Virtually nothing goes untouched. If you didn’t get a 7% raise last year you took a pay cut.
To better understand the problem we have to define what we are dealing with. Here’s an excerpt from a Mises Institute article defining inflation.
“The fundamental problem here is a failure to define the problem properly. For example, the definition of human action is not that people are engaged in all sorts of activities, but that they are engaged in purposeful activities--purpose gives rise to an action.
Similarly, the essence of inflation is not a general rise in prices but an increase in the supply of money, which in turns sets in motion a general increase in the prices of goods and services.”
Read more here
Defining Inflation | Mises Institute
*If you’re looking to dig deeper, Mises Institute has an almost endless collection of resources.
People often say that inflation is theft. This is why. ⬇️⬇️⬇️ Inflation is essentially a hidden tax that steals your currency’s value to pay for things the government can’t pay for. Notice the graph below and how in 1913 the value of the dollar drops drastically and again in the early 1970’s.
Essentially what happened at those points is a separation from the dollar and anything that has value, in our case gold or silver certificates. For reference, the creation of The Fed was in 1913. And the second cut was when Nixon separated the dollar’s final ties to the gold standard to pay for the Vietnam War. If you are looking at the drop after the Bretton Woods agreement, it was not fully implemented until 1958.
As a result, dollar bills are now tied to the value of an IOU from the government. They just print more when they run out. Why is this bad?
To put it simply…
If want to understand what causes inflation (at least in the big picture) you have to understand the Federal Reserve Bank, also known as “The Fed.” This is sometimes confusing for people who argue online. Libertarians will certainly understand this confusion if they have said something like “we need to abolish the Fed” or “End The Fed.” Almost certainly they will get responses mistaking “Fed” for the Federal Government. Honestly, they go hand in hand and are in a symbiotic relationship. However, not the same.
Recommended books on inflation and the Federal Reserve…
Creature from Jekyll Island by G. Edward Griffin
⬆️⬆️⬆️ Like Glenn Beck or not, he had a great show on the Federal Reserve about 10 years ago. This is a segment explaining the origins of the Fed. Other segments in this special feature G. Edward Griffin.
Also, a must read…
While libertarians have been tracking on the Federal Reserve/Inflation grift for decades, many “experts” are just now learning of the effects.
Even a cartoon in 1912 warned about the coming disaster the Fed would be.
It’s no surprise that the government will find no other solutions to our skyrocketing debt other than to make the “money printer go brrrrrrr.” 80% of all US dollars in existence were printed in the last 22 months and people still wonder why inflation is so high. It’s their only solution. Attaching something of value to the dollar never crosses their mind.
If you think Rand Paul was playing when he said things would get worse, take a look at what the government run corporate press is pushing.
The liberty movement, conservatives, and any advocate for the poor need a renewed focus on abolishing the Fed for good. We can’t keep raising the minimum wage and expect long term results. The increasing calls for a minimum wage hikes are only band-aids on bullet holes. Raise it and in a few years time you are back to square one. Maybe sooner.
We have to strike at the root of the weed that is strangling Americans. Most of our wasteful spending could be curtailed if the printer stopped.
End the Fed.
Don't forget this classic video from Mises Institute. Money, Banking, and the Federal Reserve https://youtu.be/iYZM58dulPE
How would "End the Fed" work in practice? Would there be a transition, or cold turkey? Also, how would politicians who depend on printing money to fund their campaign promises react to the change? I can't imagine that those who profit from the money printer would simply roll over and let it happen.
TL;DR: What's the plan?