How to Recognize Inflation

This is a true story.
          My first full time job was as a display builder at the Montgomery Ward department store at Del Amo Fashion Square in Torrance, California. This was 1970. The main competition for Ward’s in the USA was Sears, which was a larger company. There was a Sears across the street from our store. 

          There was a rumor that came up. I heard it. It was said that this was the most prosperous Sears in America and the general manager made an incredible $50,000 a year! Remember that the minimum wage at the time was $1.25 an hour. People shook their heads in amazement that someone could make such a huge salary.

          Jump ahead 47 years and $50,000 can barely enable a family to survive.

          That is how inflation works. The Federal Reserve and the politicians have printed so much fiat money during those years that the money supply has diluted the value of the dollar to about 25% of what it was in 1970.

          They have done this in order to provide FSGs to buy voters with. “Benefits” is the name of the game.
(FSGs = Free Stolen Goodies)

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