# of Words: 471

In 1928 the cost of one postage was one cent, the labor for a vehicle tune-up was one dollar, along with labor cost to overhaul the engine and transmission was about $25. These facts strengthen the case for the dollar debasement that Austrian School economists have been creating for decades. Currency debasement is a consequence of monetary inflation.

The Universal Law of Cause and Effect countries which each and every Effect has a Cause, also that each and every Cause or Action has a Effect. As like the Expansion of money distribution is the Cause which has a predictable, and Effect known as Currency Debasement.

Thus, what is Inflation following all? In easy School terms, inflation would be the constant increase in the money supply in circulation which leads to a constant decrease in purchasing power. Such event (trigger) may and it does, actually exist before its effects are seen. Make no mistake, inflation and price increases are not the identical thing, one is trigger and the other is effect. The increase in the money supply happens it represents the Cause. The cost increase occurs it represents the result. The conventional wisdom may be that the price increase should be less relevant to the general well-being of society because salaries increase thus a balance between the two has been attained.

However, Murray Rothbard and other known School intellectuals were quick to point out that it's those first in line to get the newly created money that are the winners, because they get to invest this money before everyone else. In other words, people who are getting their hands on it get to pay it before the increase in costs takes effect. From the time the rest of the people get it - 99 percent of the population - the costs of products and services have already gone up. While we are kept busy with immaterial news, we are in effect being distracted from figuring out what really is going on with the things which ought to be significant to us.

Monetary expansion, government expansion, government's debt and its own inability to function on a small budget, unnecessary bailouts, and international wars are being replaced with news of the latest movie celebrities drama or the latest national threat to our liberties from foreign lands. It's, after all, considerably more entertaining to read about the intricacies of Angelina Jolie's marriage to Brad Pitt compared to comprehend the "boring" events at the Fed. In the meantime we are assured the small guy's voice has been heard and action is being taken to address his problem. So far, it is Smoke and Mirrors and the abandoned man is again.still abandoned. Although you want to do anything about it, but believe that you are too little to make a difference you might consider joining the Ron Paul revolution.

Related Papers

Effects of Increasing Minimum Wage on United States Economy

It's a honor to be invited here today to talk about how a fair minimum wage can help families support and also succeed broad-based income increase in our society. Raising the minimum wage and ensuring that its value remains at a reasonable amount with time by indexing it to the price of living will probably establish a stronger initial rung on the ladder to economic protection. The minimum wage is the cornerstone of a group of policies, including the Earned Income Tax Credit, the Affordable Care......Read More

The Minimum Wage Should Be Eliminated

I'd like for the readers to consider this question quite closely. Our Supreme Court is composed of the Chief Justice of the USA along with a number of Associate Justices that are designated by Congress. The present number of Associate Justices is put to eight according to the US Code. The power to nominate a justice lies completely the President along with the consent of the Senate. Judges are human just like anyone else and this trait makes them less than ideal in most people's eyes. From the......Read More

The United States Government on the Issue of Minimum Wage

When we think of the dominant political topics of the day, issues like health care, immigration, and foreign policy in the Middle East quickly come to mind, but it is a mistake to leave the minimal commission from the list. At the face of Republican opposition, congressional action is unlikely before 2015 at the first, but there's quite a bit away from Capitol Hill. States and municipalities across the country are leading a localized drive to increase the minimum wage who see an opening to......Read More

Related Topics