Gold in 1980 - $614
Gasoline in 1980 - $1.19/gal
Avg House in 1980 - $76k (@20% interest)
Gold in 2020 - $1773
Gasoline in 2020 - $2.60/gal
Avg House in 2020 - $285k (@3%)
So it looks like 1$^1980 ~= 3$^2020. That's not Zimbabwe by any means, but it does mean a dollar has lost 2/3 of it's purchasing power just in my lifetime.
Just looked it up. Your prices from 1980 aren't adjusted for inflation. You could also post the average income per hour which was $6 in 1980. Today it's over $22 an hour on average in the US. Seems like people make more than 3 times as much today as in 1980.
Your prices from 1980 aren't adjusted for inflation.
The point of the price comparison was to ballpark the rate of inflation which currently exists, in order to answer your question "Do you think they will have a massive inflation problem?". Inflation exists, it exists partly because of government money printing but mostly because of fractional reserve lending. It's only a problem if it accrues consequences. The consequence of inflation, for me, is that saving money means my savings get bled away by a hidden tax. Consequence of that is to avoid that tax I have to put my money into the stock market. Consequence of that is a stock market sloshing around middle-class money that doesn't really want to be there, with the attendant wealth transfer from the middle-class to the professional investor class. I think inflation is a problem because consequences of inflation accrue to me. Others might think it's beneficial because they can profit by it.
point of the price comparison was to ballpark the rate of inflation which currently exists
Your point lacked also the increase in hourly earnings. If the price for everything goes up 3 times but your earnings also go up 3 times for the same work, you didn't lose anything.
As for how inflation is a hidden tax, welcome to capitalism. Moderate inflation (around 2%) is needed in our current economic model. Stagnation or even deflation have devastating effects on a capitalistic society. Same goes for hyper inflation.
Your inflation examples are not adjusted for inflation... lol.
Of course wages increased since 1980. But the debate here is if we get inflation now. Will today's inflation, if it happens, be matched by wage increases?
I don't know in which part of Canada you live, but here in Saskatchewan house prices are down from the high in 2015 and food prices aren't really up. I don't see any increase in grocery spending compared to other years.
Everyone I know is saying how much the price of food has gone up
I don't see it. Maybe if you know order food through apps like UberEats, then I would understand why someone would think that food is more expensive, but otherwise ... eggs are cheaper than last year, some goes pork and vegetables. And while gas went up in the last few weeks, it's still way cheaper at 93 cents than last year.
Dude, gas is currently 93 cents where I live. Two years ago it was over $1.10 and during 2012 it was like $1.30. As for food, I didn't notice any increase in spending for food.
I'm pretty sure if the people holding our debt call in that debt, that's when the house of cards collapses.
What if various leaders have backroom deals with the people holding the debt?
What if that includes using our "private" land as collateral?
How would they convince the masses they need this bailout? How would they "manufacture" consent?
I doubt it. People said the same thing in 08/09 and it didn't happen. And it's not like we're the only ones with massive budget deficits.
Just look at the US. Do you think that they will also have a massive inflation problem?
Gold in 1980 - $614
Gasoline in 1980 - $1.19/gal
Avg House in 1980 - $76k (@20% interest)
Gold in 2020 - $1773
Gasoline in 2020 - $2.60/gal
Avg House in 2020 - $285k (@3%)
So it looks like 1$^1980 ~= 3$^2020. That's not Zimbabwe by any means, but it does mean a dollar has lost 2/3 of it's purchasing power just in my lifetime.
Just looked it up. Your prices from 1980 aren't adjusted for inflation. You could also post the average income per hour which was $6 in 1980. Today it's over $22 an hour on average in the US. Seems like people make more than 3 times as much today as in 1980.
The point of the price comparison was to ballpark the rate of inflation which currently exists, in order to answer your question "Do you think they will have a massive inflation problem?". Inflation exists, it exists partly because of government money printing but mostly because of fractional reserve lending. It's only a problem if it accrues consequences. The consequence of inflation, for me, is that saving money means my savings get bled away by a hidden tax. Consequence of that is to avoid that tax I have to put my money into the stock market. Consequence of that is a stock market sloshing around middle-class money that doesn't really want to be there, with the attendant wealth transfer from the middle-class to the professional investor class. I think inflation is a problem because consequences of inflation accrue to me. Others might think it's beneficial because they can profit by it.
Your point lacked also the increase in hourly earnings. If the price for everything goes up 3 times but your earnings also go up 3 times for the same work, you didn't lose anything.
As for how inflation is a hidden tax, welcome to capitalism. Moderate inflation (around 2%) is needed in our current economic model. Stagnation or even deflation have devastating effects on a capitalistic society. Same goes for hyper inflation.
Your inflation examples are not adjusted for inflation... lol.
Of course wages increased since 1980. But the debate here is if we get inflation now. Will today's inflation, if it happens, be matched by wage increases?
That was the point of my comment, because the prices above aren't either.
Are you feeling okay? I also showed him that people make more than three times as much today as in 1980. That should be included in the point.
I don't know in which part of Canada you live, but here in Saskatchewan house prices are down from the high in 2015 and food prices aren't really up. I don't see any increase in grocery spending compared to other years.
I don't see it. Maybe if you know order food through apps like UberEats, then I would understand why someone would think that food is more expensive, but otherwise ... eggs are cheaper than last year, some goes pork and vegetables. And while gas went up in the last few weeks, it's still way cheaper at 93 cents than last year.
Dude, gas is currently 93 cents where I live. Two years ago it was over $1.10 and during 2012 it was like $1.30. As for food, I didn't notice any increase in spending for food.
Remember when Jean chretien said, "a billion here, a billion there, soon we're talking about real money."
What a piker.