Wednesday, March 21, 2012

Conservative View Inflation Has Gone Insane

     I pulled up to the pump to buy some gasoline today.  The price was $3.85 a gallon.  The gallon of milk I bought earlier in the week was $2.69.  Mailing a package cost me almost $25.00.  Compare that with these prices from 1962:

Gallon of Gasoline                     $0.31
Gallon of Milk                           $0.49
First Class Stamp                      $0.04

     What causes the difference in prices?  The value of the US Dollar is disappearing because of inflation.  In its simplest terms, inflation is caused when a money issuing institution, in this case the United States government, creates more money than is justified by the wealth of that institution.
     Why would the United States want to print more money than is justified?  As a Conscious Conservative, I believe that one answer is that in an environment where money is worth less and less, whoever gets the money first gets the most value from it.  In the United States, that means that the government and bankers get the most use from each dollar and wage earners get the least.  Basically, government creates and spends the dollar when it is still worth a dollar, but by the time it ends up in a worker's paycheck, it is only worth $0.90 in an environment of hyperinflation.  This is an incipient "hidden tax" that Americans have been paying since the mid-20th century.  That we put up with it is insane.


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