flown-the-coop said:
Helicopter Ben said:
flown-the-coop said:
Prices will always go up. The Louisiana Purchase was around $30 million at the time when all said and done, or $350million or so in today's dollars. If you bought it today, it would cost $1.5 to $3.0 TRILLION.
If McDonald's is becoming too much for you, then I would suggest looking for some coupons or ordering from the value menu.
Incorrect. Prices should go down for most things over time. As technology and innovation improves, we should see prices for most things fall leading to a lower cost of living. With a lower COL, people can afford more things which means their standard of living improves. This dynamic is the entire basis of what we would call economic progress.
We've grown so far removed from sound money that people just believe inflation is natural. It's not. It is all a function of money creation aka the original definition of inflation. Rising prices were understood as a RESULT of that money creation.
Lots of flawed thinking in your analysis. Lots.
Increased standard of living can be assisted by efficiencies in farming, transportation, refining, manufacturing, etc but are often offset by scarcity of materials, increased labor costs, and a whole multitude of factors. And as things become "cheaper", consumers tend to react by consuming MORE, increasing demand which increases price if supply remains stable.
Economic progress and improved standard of living increase demand and prices.
Your take on actual inflation is correct. But rising prices are not purely based on "money creation".
Incorrect again, unless you are arguing semantics. In that case, perhaps I should have said "general prices" should fall over time.
What you are describing in your second paragraph is just a long winded version of simple supply and demand. Yes things ebb and flow. But the general trend in a productive economy should see
general prices fall over time. The caveat, of course, is that we must have sound money that actually holds its purchasing power.
The COL crisis is 100% caused by inflation (aka money creation) eating away at our purchasing power. It's not even difficult to prove. Just take gold or silver purchasing power and compare that to the USD. When you price things in terms of gold or silver, basically everything has fallen. It takes fewer ounces of gold to purchase a home than it did even during the PMs price spike of 1980. Same thing is true for automobiles and just about everything else you can think of.
Or how about an even simpler example? Minimum wage in 1964 was $1.25 per hour. If you had taken payment in quarters, the melt value of those coins would trade at ~$75. That means an hours labor at minimum wage in 1964 would give you the equivalent of a whopping $75 in today's purchasing power. That is a 90% decrease. The supply of gold and silver has gradually increased by a small amount over this time period, so you cannot say it's a scarcity issue.