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Life In America Has Never Been More Unaffordable Than It Is Right Now

Posted by freedomforall 5 months ago to Politics
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Excerpt:
"Our standard of living is being systematically destroyed, but for a lot of years many Americans didn’t fully understand what was taking place because it was happening so slowly. But now we have reached a stage where the purchasing power of our money is collapsing and the cost of living has become exceedingly painful. Thanks to our rapidly rising cost of living, the middle class is becoming “the impoverished class”, and the poor are increasingly being pushed out into the streets. If we do not find a way to turn these trends around, it won’t be too long before we have tremendous societal turmoil on our hands.

Earlier today, I came across an article about a woman that found a receipt from Burger King that was dated August 10, 1986.

At that time you could buy a Whopper for just $1.54.

Today, that same Whopper will cost you $6.79…"
================================
Completely the fault of federal government and done so on purpose.
NIFO.
SOURCE URL: http://themostimportantnews.com/archives/life-in-america-has-never-been-more-unaffordable-than-it-is-right-now


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  • Posted by $ Abaco 5 months ago
    This is an interesting read. All very true. I love the mention that "it was happening so slowly". I have several friends who've talked about "when the SHTF..." But, I always stop them and say it won't be a sudden event, but will be a slow, steady decline. But, it is really noticeable now, isn't it?

    I've been reworking what little wealth I've collected over the years and leaning heavily toward owning "things"...things that generate income. Securities are VERY risky lately, given the volatility brought on by a hawkish Fed, a proxy war with the world's biggest nuclear power, over 10,000 undocumented immigrants pouring into America every day, and a leader who can't speak. Nobody in the media is talking about "stagflation" anymore, but we're there. Good luck with that!

    Maybe if the nation survives this we can have a conversation about the (then) $36T hole we've dug. LOL...
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    • Posted by $ Snezzy 4 months, 3 weeks ago
      Can you give a short list of your favorite "things" that generate income? Our ponies are finally getting birthday gigs again, but they aren't "things". They are friends who allow us to get paid for going to parties so that we can buy them hay and horse feed.

      So what things do you have?
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      • Posted by CaptainKirk 4 months, 3 weeks ago
        Chickens/Eggs would be high on my list.
        Sell what you don't eat.
        They can be submerged in a slight brine (if the shells are not washed, like store bought), for "years" from what I understand.
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  • Posted by mccannon01 5 months ago
    Depending on where you live property taxes can go up considerably as home assessments increase with inflation. Retirees can find themselves paying more and more to stay in a house they may have paid off years ago. How long will it be before there are numerous older folks standing on the sidewalk looking at the house they paid off, but now the government has thrown them out of? The annual taxes on my house are now more than the mortgage I paid off back in the '90s.
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    • Posted by $ Abaco 5 months ago
      This has been happening for the past 30 years in states that don't have a Prop 13-like law like California has. When the California migration to Puget Sound happened it tossed a lot of local retirees out of their homes because of this. Never seemed to be a news story for some reason...
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  • Posted by $ blarman 4 months, 3 weeks ago
    This is all part of the plan to force people to digital currency. They want to break the economy in such a fundamental way (by debasing the currency) that they can then pretend to be saviors by sweeping in and issuing a new currency - a fully controlled digital currency they can use to control every aspect of life.

    I hope that when the mobs come for them with nooses they have that last-second realization that they were the cause of their own demise.
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    • Posted by $ pixelate 4 months, 3 weeks ago
      While I agree that the plan is to crash the economy and coral folks into a digital currency with complete State control; I disagree regarding the mobs -- as they will become party to a system of poverty management. Instead of mobs with nooses, I would be more in favor of quiet deletions from behind the scenes -- word spreading among the elite of a silent shadow taking them out ... a quiet cutting of the rotting pillars supporting the frauds.
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  • Posted by LarryHeart 4 months, 3 weeks ago
    Inflation of prices is a weasel phrase of the left. There is no such thing as "Inflation". It is deflation of the amount of debt the Federal Reserve note represents. Our currency is based on exchange of debts. A Fed Note was declared "Legal Tender" to be exchanged for the debt you owe for groceries or any other debt.
    The government keeps issuing new debt notes to cover their spending. These new notes move the debt from your notes to the new ones.
    So prices rise to EQUALIZE with the lesser value of the debt notes you hold.

    E.g. let's say the price is 100 cents to buy an item. The government doubles the amount of notes so your "Dollar" note now represents only 50 cents of debt. The price is now two 50 cents "Dollar" Notes. Get it?

    Why didn't we see so much inflation before? As production gets better prices fall. This allows equalization to the reduction of the debt in your notes without raising prices to equalize. Wages also rise but always much more slowly than debt stealing by the government. If the government borrows to much and production does not get better in pace to the falling prices and wage increases we get price increases.
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  • Posted by Ben_C 4 months, 3 weeks ago
    My view is that it is the percentage of income that is required to purchase good and services that is the yardstick . Example: when I graduated from college in 1968 I purchased a corvette. This purchase represented about 30% of my annual salary. Today a corvette would be most of my annual salary, I use the cost of postage stamps as my measuring tool to establish percentage. At graduation stamps were 5 cents. Now they are 66 cents. My income has not kept pace!
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  • Posted by $ TomB666 5 months ago
    I'm not sure I understand what mshupe means? If you are saying the money has lost value, that is correct and as freedom says it is the government that has caused that decline in value.
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  • Posted by shaifferg 4 months, 3 weeks ago
    I failed to mention that along those same lines my property tax has moved from the $1000 over the past 10 years it was around that amount, with this years re-evaluation of properties is now just over $2000. Still looks like a 100% increase
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  • Posted by shaifferg 4 months, 3 weeks ago
    I tend to purchase the same groceries every month in the same quantities. During the Trump administration the typical expense was in the vicinity of $110 to $120. Yesterday I made my 1st of the month purchase and was allowed to pay $230 for $115 worth of grocery. Despite the low inflation rate they keep lying about this feels like a 100% increase to my fixed income.
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  • Posted by LarryHeart 4 months, 3 weeks ago
    Inflation of prices is a weasel phrase of the left. There is no such thing as "Inflation". It is deflation of the amount of debt the Federal Reserve note represents. Our currency is based on exchange of debts. A Fed Note was declared "Legal Tender" to be exchanged for the debt you owe for groceries or any other debt.
    The government keeps issuing new debt notes to cover their spending. These new notes move the debt from your notes to the new ones.
    So prices rise to EQUALIZE with the lesser value of the debt notes you hold.

    E.g. let's say the price is 100 cents to buy an item. The government doubles the amount of notes so your "Dollar" note now represents only 50 cents of debt. The price is now two 50 cents "Dollar" Notes. Get it?

    Why didn't we see so much inflation before? As production gets better prices fall. This allows equalization to the reduction of the debt in your notes without raising prices to equalize. Wages also rise but always much more slowly than debt stealing by the government. If the government borrows to much and production does not get better in pace to the falling prices and wage increases we get price increases.
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  • Posted by mshupe 5 months ago
    This is article pure ignorance. Keep up the good work!
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    • Posted by 5 months ago
      If you could be more specific about the ignorance of the article, the rest of us could be enlightened.
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      • Posted by mshupe 5 months ago
        Thanks for asking, and you're right, I could have been and should be more specific. My comment is based on title of the article and the first piece of evidence offered in its defense. To give the author credit, I agree that a Burger King Whopper in 1986 is largely identical today, so this may be a good reference, but the dollar price is not. A much better gauge would be the dollar price of gold - about $375 per ounce, and when this article was published gold was about $1,875. In other words, both have quadrupled in dollar price terms. This only proves that the Whopper ain't tellin' no Whoppers, but as to the headline, not so much. My point is that only a simpleton would use inflated dollars to draw these comparisons (the cost of a home example is equally absurd) to complain about inflation. That's like saying a turd sandwich doesn't taste good. To boot, today's color TV ain't your dad's color TV. A bag of pot ain't your dad's bag of pot. A Honda CRV ain't your dad's CRV. In fact, despite the government's assault on the middle class (which is real, they hate mass prosperity they didn't create), we continue to enjoy more, better, and cheaper - thanks to what's left of capitalism. And it's a lot. Equally absurd is to say, "the poor are being pushed out into the streets." By whom? Where? Typically, he cites no evidence or causality. The real problem is that LBJs Great Society created public housing known as urban plantations to help create fatherless families and generational dependency. This author would be better served to stop pretending to be an expert and understand the concepts of his complaints.
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        • Posted by mshupe 5 months ago
          To continue, a personal computer is almost free when you compare inflation adjusted prices with computing power. To summarize, inflation is a monetary phenomenon (Milton Friedman), dollar prices fluctuate for many reasons, and there is a major cause of today's rising prices that is not monetary, but this article and most economic analysis ignores what it is.
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          • Posted by $ Abaco 5 months ago
            I am going to read this rant again! Not getting it yet...but my coffee hasn't kicked in.
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            • Posted by mshupe 5 months ago
              More simply, the headline is patently untrue. To claim everything is more expensive than ever using terribly inflated dollars as the standard of value is garbage propaganda. Context is essential, and so is objective evidence. In this case, gold is a superior standard of value with which to compare relative costs for maintaining one's lifestyle.
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              • Posted by 5 months ago
                Yes, computers are less expensive measured by capability compared to the early years of actual computers.
                How can we measure objectively the devices that make some products more useful and apply those benefits to affordability of life?
                If gold is the measure should we ask: is gold now more or less affordable than it has been in the past for the 'average' person?
                (imo, we are seeing only the beginning of the inflation for Americans that will come in the next few years, and the affordability of life is in a downward trend.)
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                • Posted by mshupe 5 months ago
                  I think we should look at gold differently. Think of it as a constant, as an absolute. The value of all other currencies is ultimately determined by the universality of gold. In that context, the question is not the affordability of gold, but efficacy of the commonly accepted currency.
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                  • Posted by $ Abaco 5 months ago
                    I've been following the price of gold for a few decades and came to the conclusion that it may be a good part of a portfolio but it's not a heavy go-to for fighting normal inflation. What I noticed is correlation far from -1 with inflation. I do think 5% in a portfolio is a reasonable hedge against hyper-inflation for a few reasons. Gold is another "thing". The others are art, classic cars, my all-aluminum tig welded fishing boat, rental property. In my lifetime real estate has been pretty unbeatable. Your comments, though, will have me look at the historic data on gold again!
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                    • Posted by mshupe 5 months ago
                      Yes, very good. You've hit on an all-too-common misconception about gold as an inflation hedge. Another is the view of it as an investment, but as usual, we must define our terms. If we define an investment as something with an internal rate of return (IRR), then gold does not fit. In fact, the only assets that fit would be those dependent on human action. Certainly, gold is an asset like fine art and other commodities, but it is unique as the universal form of sound money. To fit that mold, a highly durable commodity must have a very low flow to stock ratio, meaning very difficult and expensive to produce (flow added to the stock), among other things. The problem with gold as money is security and transportability; that's where gold-backed bank notes come in handy.
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                  • Posted by 5 months ago
                    So we can't measure affordability of life based on the number of units of currency and we can't base affordability on gold.
                    How do you think we determine expense of life so it is comparable to the past?
                    That measurement is the intent of the article.
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                    • Posted by mshupe 5 months ago
                      My original comment was that this article fails miserably. First, the title is absurd. The subject, "Life in America" doesn't mean anything. The predicate, "Never Been More Unaffordable" is easily refuted, disproven, and dismissed as juvenile. Now, if the intent of the article is to prove that expenses for the average American household at the median level of living standards is far greater than it was 40 years ago, then it would help to have a working knowledge of economics and technological advancement. In fact, the author doesn't seem to care about either. For example, it is wise to use inflation adjusted prices, and even better to understand the concept of inflation - both monetary and price inflation, for this project. To answer your question, the examples used in the article should not only adjust prices to down to 1986 levels, but also adjust relative values up for the contribution of technological improvements. Of course, this is not possible because in many cases there was nothing 40 years ago for which to compare them. It gets even better (or worse); all of these improvements in the analysis ignore the geometric expansion of choice among alternatives. However, all of this ignores the obvious. A hard money, gold-based currency would eliminate the waste of time that this article has produced. That is the goal of government monopoly fiat currency, to create chaos, that ostensibly, only more of the poison will cure.
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                      • Posted by 5 months ago
                        OK, I understand your point. Thanks! 👍
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                        • Posted by mshupe 5 months ago
                          My pleasure; it's a worthy discussion on applied economics, and now realize that I've missed the most important aspect of all - time. What is the purpose of innovation and increased productivity? Time. To create more time for enjoying life is the ultimate goal of creating wealth. A good question: do most Americans have more time for their high value activities?
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                          • Posted by JakeOrilley 4 months, 3 weeks ago
                            Thank you both (FFA and Mshupe) for the discussion and enlightenment. I do appreciate the depth the discussion reached. There are so many facets to consider, and unfortunately the average level of economic education in this country is such that most of this would not be understood. Thanks again!
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                        • Posted by JakeOrilley 4 months, 3 weeks ago
                          Thank you both (FFA and Mshupe) for the discussion and enlightenment. I do appreciate the depth the discussion reached. There are so many facets to consider, and unfortunately the average level of economic education in this country is such that most of this would not be understood. Thanks again!
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