debate thread

[Scary_Tiger]

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Paul made a comment that today's dollar is only worth 4 cents when compared to 1913(?) dollars. What context was this in?

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As a result, the Federal Reserve Note (US dollar) has lost 96% of its purchasing power since 1913.
Source: U.S. Dept, of Labor, Bureau of Labor Statistics, CPI

[pvn]

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I do think that there are a couple of positives to take from that debate. For the first time, he was placed behind the proper podium, rather than off to the end. I also believe the NASCAR adage, it's better to be met with boos than to be met with silence. Those are signs that he's finally being taken seriously as a candidate.

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Some smart skinny bald guy once said

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First they ignore you,
then they laugh at you,
then they fight you,
then you win.

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[Copernicus]

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He also thinks its better for them to just attack Hillary during their debates rather then debate their actual differences.

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You didnt know their differences 3 months ago?

[Copernicus]

[ QUOTE ]
[ QUOTE ]
Paul made a comment that today's dollar is only worth 4 cents when compared to 1913(?) dollars. What context was this in?

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As a result, the Federal Reserve Note (US dollar) has lost 96% of its purchasing power since 1913.
Source: U.S. Dept, of Labor, Bureau of Labor Statistics, CPI

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Link?

[DcifrThs]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Paul made a comment that today's dollar is only worth 4 cents when compared to 1913(?) dollars. What context was this in?

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As a result, the Federal Reserve Note (US dollar) has lost 96% of its purchasing power since 1913.
Source: U.S. Dept, of Labor, Bureau of Labor Statistics, CPI

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Link?



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it's from libertydollar.org and it is inflation.

i don't see a huge problem in using it as a measure of purchasing power (of the basket of goods that headline CPI is composed of).

Barron

[Taso]

[ QUOTE ]
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[ QUOTE ]
Paul made a comment that today's dollar is only worth 4 cents when compared to 1913(?) dollars. What context was this in?

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As a result, the Federal Reserve Note (US dollar) has lost 96% of its purchasing power since 1913.
Source: U.S. Dept, of Labor, Bureau of Labor Statistics, CPI

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Link?



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www.scarytiger'sMSpaint.com

you're welcome.

[Copernicus]

[ QUOTE ]
[ QUOTE ]
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[ QUOTE ]
Paul made a comment that today's dollar is only worth 4 cents when compared to 1913(?) dollars. What context was this in?

[/ QUOTE ]



As a result, the Federal Reserve Note (US dollar) has lost 96% of its purchasing power since 1913.
Source: U.S. Dept, of Labor, Bureau of Labor Statistics, CPI

[/ QUOTE ]

Link?



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it's from libertydollar.org and it is inflation.

i don't see a huge problem in using it as a measure of purchasing power (of the basket of goods that headline CPI is composed of).

Barron

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It depends on how one interprets "purchasing power". The casual listener/reader would react "ZOMG, I can only buy 4% of what I could in 1913, what a disaster".

Of course that is only a portion of the picture. The real question is what does 1 hour (or one month or one year) of my labor buy. As you noted in another thread, you can increase the money supply by printing double the money, but if prices exactly double, and wages exactly double, there is no net impact (lets not get into a tax rate discussion, they can be adjusted too). Yet this kind of "purchasing power" graph would show a decline in purchasing power of 50%, simply because prices doubled.

It is a deceptive at best, meaningless at worst, graph and statement by RP.

Inflation adjusted GDP/capita is far more relevant for a "am i better off" discussion, which is what someone who is thinking about inflation really cares about.

[Scary_Tiger]

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but if prices exactly double, and wages exactly double

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But what about for people that want to retire? It's absolutely disastrous if prices and wages double.

It also makes saving US dollars or investing in the US dollar a pretty poor idea.

[Copernicus]

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but if prices exactly double, and wages exactly double

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But what about for people that want to retire?
<font color="red">In a real life scenario the change in prices over their lifetime is limited by time, and their investments grow with an inflation adjusted rate of return. their Social Security benefits are also adjusted. The only real and meaningful decline in their standard of living comes from private pension plans that may not be inflation adjusted. Thats why retirement is a "three legged stool" and they need to anticipate the decline in that portion of their retirement income by saving more </font>



It also makes saving US dollars or investing in the US dollar a pretty poor idea.

[/ QUOTE ] <font color="red">no, it doesnt necessarily make it a poor idea. Again it is REAL purchasing power, not nominal dollar values, that is critical to an investment decision. As long as returns on the investment exceed the increase in prices by an acceptable real rate of return, nominal dollars are meaningless. </font>

[manbearpig]

My question would be, why is artificial inflation necessary for anything other than being able to "afford" excess spending? It seems it would be a whole lot simpler for everyone if the dollar was worth the same amount for a long time.