Apropos Robert Wenzel’s LRC essay today on the pinhead ‘Fed’ lackey David Andolfatto, I would like to point out a disingenuous remark that Andalfatto made. He stated:
“Yes, what cost $1 in 1913 now costs $20. But so what? Money neutrality states that if you were earning $1 per hour in 1913, you are now earning $20 per hour (and even more, if labor productivity is higher).”
In 1920, a person making $20,000 was considered making a very nice salary. Today, adjusted for inflation, that person would be making $220,000 a year. In 1920, a person making $220,000 would today be making (again, adjusted for inflation) $2,422,453 a year.
Let’s not adjust for inflation. Let’s take that same $220,000 a year in 1920 and bring it up to date for 2011. Is there anyone reading this post who thinks that $220,000 today couldn’t provide a very comfortable living for a family of four, albeit not quite as extravagant as a $2,422,453 salary a year?*
Now let’s take that same $20,000 dollars a year back in 1920, not adjust for inflation, and bring it up to date for 2011. Is there anyone reading this post who thinks that $20,000 today can provide a very comfortable living for a family of four?
That is how the Banksters have purposely destroyed the middle class over the past century with their destruction of the value of the dollar.
*BUT, to the person who would have been making $2,422,453 salary today who now has to live on a $220,000 salary, he has unhappily seen a drastic decline in his standard of living—even though he is certainly not starving. The person who would have been making $220,000 salary today, but is now making only $20,000, has seen his standard of living destroyed.