INFLATION—Is the Government Lieing To Us?
The Grumpy Truth About…. Inflation
Over the past month or so every news report linked to recent labor market, consumer product/supply chain, and legislative/infrastructure proposals has attached a cautionary siren regarding inflation. It seems everyone opposed to government spending at this point is claiming that inflation is running wild and will become catastrophic. Well those within the government who seem to stay composed sand to deflect such concerns are being looked at a glance as if they are keeping some sort of secret, therefore , let’s see what the facts tell us.
Hmm….. in this “let’s chase the shiny ball” news cycle driven media storm we call progress it is important to actually take a longer view. While economic factors often go through. Somewhat dramatic change the overall status of our country is generally more like a battleship. That is…it doesn’t turn on a dime and course corrections are subtle. It is perhaps better to look at inflation in that regard. So how threatening is this inflation rate that is hovering around 5.5%?
Well looking.WAY back the highest inflationary rate ever was created and survived by the founding fathers. The founding fathers whose intentions we are hardening on a regular basis had an inflation rate in 1778 of29% or so. Did this cause them to shut down the country and the burgeoning attempt to merge democracy and capitalism? Nope.
Okay…tooo long ago you say… fair enough. Let’s go Wartime 1917. How about an inflation. Rate of 19.6. It was 12 more years until the Great Depression and any attempt to link the inflation rate with the crash has proven futile. Still too long ago? Well those of a certain political ilk love and venerate the president who was an actor and California governor. In the first two years of the 1980’s —well let’s make it 3 years and not attach the CPI to aforementioned president—The inflation rates for years 1980,81, and 82 were
Over 11% 10.33% and well over 6% respectively. Who freaked out then? Wasn’t this president the conservatives’ wet dream?
A historical look seems to indicate that. Our economic system as pooor as it may be aat equitable distribution of monetary resources (a topic for another time) Handles these inflation rates with the application of the supply and demand cycle and changes in credit rates.
Oh you may argue that inflation really hurts the middle class and lower class more than the wealthy job creators—nonsense! First of all demand for products is and will always be the only factor in job creation in our economy—people. Make and sell stuff because other people want it or at one point are convinced we need need it. Did the marketing of pet rocks inflate the price of certain. Rocks? You bet you left eye it did. If you don’t know what pet rocks” are/were then don’t wade in with your fear of runaway inflation because you don’t have adequate perspective about what our economy does.
So … what is the Grumpy Truth when it comes to INFLATION?
It’s another economic term that people in power and those trying to manipulate that power use to create fear. If action A is taken then horrible thing B will happen The folks who use this tactic do nothing to help others understand inflation and it’s specifics. Do you hear these folks talking. About, or presenting facts about THE CONSUME PRICE INDEX???? Oh tht’s just the primary indicator of inflation. What’s included in the consumer price index? Ask your doctor, ask your lawyer, or better yet ask the next retail clerk you meet to enter into a discussion of the consumer price index. Oh why not ask a politician or elected official? That’s like asking a fox about henhouse security. If someone can’t tell you about the consumer price index ask them about the history of the televisions their family has owned. Most smilies own a television many times more advanced than the generation before them at a far lower price. Oh and check out the price tag on a microwave or a computer… then explain the impact of inflation on these. Things… then maybe we can have some sort of meaningful ciscussions. Oh and while we are at it add economic history to our high school menu. History needs to be thought of far more broadly than a chronicle of bloodshed created by power-thirsty egomaniacs.
W
