"blake murphy" > wrote

> for republicans, tax cuts are the universal solvent. times are good?
> then
> the government doesn't need the money. times are bad? then people need
> to
> keep more of their income.
>
> it's a reverse catch -22.
>
> your pal,
> milo

The government always needs money. More and more of it.
I've not verified what is below but I've seen similar numbers in the past.


From another newsgroup:
A postage stamp in year 1950 was 3 cents; in year 2008, it costs 42
cents (1,400% inflation = 4.74% per year for 58 consecutive years).

A gallon of 90 Octane full-service gasoline cost 25 cents in 1950; as
of AUG 2008 it costs about $3.84 (1,536% inflation = 4.91% per year
for 58 consecutive years).

A house in 1959 cost $14,100; as of AUG-2008, the median home price is
$213,000 (1,511% inflation = 4.88% per year for 58 consecutive years).

A dental crown in year 1990 cost $200; as of AUG-2008, it costs $1,100
(550% inflation = 11.3% per year for 18 consecutive years).

Monthly government Medicare insurance premiums paid by seniors was
$5.30 in 1970; as of 2008, it is $96.40 (1,819% inflation = 11.34% per
year for 28 consecutive years; up 70% in the past 5 years);

Several generations ago a person worked 1.4 months per year to pay for
government; as of 2008, the average person works 5 months per year to
pay taxes;

In the past, one wage-earner families lived well and built savings
with minimal debt, many paying off their home and college, and
educating children without loans. How about today?

Based on that, what do you really think the real inflation rate is ?
What ever it is, it is too high, and it is likely to get worse.
Already, inflation has been positive for 52 consecutive years (since
year 1956):

U.S. nation-wide debt has grown from 100% of GDP in year 1956 to 420%
of GDP in year 2009, and money is being created as debt at a ratio of
9-to-1 of debt-to-reserves, creating a situation where 90%-to-95% of
all money in existence exists as debt.
Where will the money come from to merely pay the interest on that
debt, when that money does not yet exist?