| |
THE REAL REASONS FOR INFLATION!
There are only two real reasons for inflation. They are increased costs
and limited supply. Since paper money is presently being used as the motivating factor for the production of goods
and services, the use of a limited money supply can only result in limiting the production of goods and services.
When this is done we cause the demand to become higher than the supply and inflation is created.
|
|
THE REAL REASONS FOR INFLATION!
However, inflation alone doesn't really matter if you have sufficient
money to buy the things you need or want. If 100 people each have $1 and the cost to live is $1. Is that any different
than if 100 people each have $2, and the cost to live is $2? Absolutely not!. Inflation only matters when the supply
of money is limited. Then inflation is very important. Especially if you are someone in need of the money that's
not there.
Look at what happens to an Adequate Supply, that is distributed amidst
a limited amount paper. We have a fire truck, a firehouse, and a trained firefighter. We have adequate supply.
However, lacking the paper money, which is limited by distribution, the firefighter cannot be paid. Without the
firefighter, neither the firehouse nor the fire truck needs to be produced. This means that not only do we eliminate
the jobs associated with the production of fire trucks and firehouses and the entire domino effect that this causes.
We also put our property and our lives at risk. For those who like to say they don't want to work. How about asking
that laid off fire fighter that question?
Our educational system is another example. Lacking proper funds, we cannot
attract quality educators. With educational costs skyrocketing, fewer would-be students have the opportunity to
become educated. Does this produce a better society? The answer is definitely not. To deny that these are the results
of our present economic policy is to deny the truth. What is really crazy however, is that instead of simply printing
more money, a power given to the federal government under the constitution, we don't. Instead we borrow the money
through a banking system that then charges us interest. To pay this interest we either have to raise taxes (increase
cost) or cut back on goods and services (increase demand). Is this insane or what? When the devastating results
this causes are finally realized, which I think is beginning to happen. It should no longer be hard to understand
what is wrong. This understanding should commit us to action, to create change, and the only thing stopping it,
is us
|
|