If you go back in time 50 years ago, nearly everything was 180 degrees backward to what we have today. We had an economy that “made things”. In fact, we made more things and made them with better quality than any other country in the world. “Made in Japan” meant that the product was cheaply made and would break easily. Now, can you imagine working on your car with a typical ratchet set made in America? Good luck if you have a frozen bolt. Cars made in Detroit were the envy of the world, now if you want real quality, it is a Japanese, German or South Korean car you’ll be looking at.
A good job, one where just the father of the household could support the whole family meant working in a factory, driving a truck or working a trade. A weekly salary could provide the basics for a family of 4. “Food stamps?” What were those? Do you remember the stigma attached and the embarrassment? Unemployment? Back then, unemployment meant a chance at finding a better job than the one you left. Money was “real” (sort of) and it went far enough to just barely finish out the month with enough left over to put some away into a coin jar so the family could take vacation in the summer.
Now we have families where husband and wife both work (or collect a benefit) to make ends meet. Rarely is there much left over at the end of the month so a small balance gets added to the credit card or home equity loan. 50 years ago, if you went into your bank and asked for a credit card or home equity loan, your banker would have looked at you like you were a bit queer or something, now, “don’t leave home without it.” What once was the entire mortgage payment including the taxes, insurance, principal and interest is now no longer enough to just pay the taxes alone. People who saved their entire lives and paid off their houses, now face taxes higher than what their total mortgage payments were years ago and have bank accounts that pay them virtually no interest.
So, is this just another piece where Holter waxes reminiscent? No, all of this “happened” because of inflation. Slowly but surely, the cost of living grew faster than Dad’s salary so Mom went to work. Then after another 10 or 20 years, Mom’s salary couldn’t plug the gap anymore so the balances on credit cards and home equity loans came into focus as a “third worker” and here we are in the midst of another and far greater Great Depression.
Many have proffered that we “just became lazy” which may be true to some extent. Many have said that the “social programs” have offered too much incentive to not work and instead stay home and game the system, also very true to some extent. But, the real problem has been the inflation caused by the fact that our money is not real. Not that many really understand this concept but they do understand “it is not as real as it used to be.” Meaning that a hamburger, fries and a coke where you got change back for your Dollar, now costs $6 or more so how “real” to the average person is a $1 bill?
This outcome of course was carved in stone back in 1971 when we went off of the Gold standard completely. The temptation to over spend, over tax, over borrow and thus OVER PRINT in a fiat regime is greater than the apple was for Adam and Eve. The ultimate results were known then and are known now. Which is why the system must be “reset” now. Inflation has made the system untenable because life has become “too hard” for too many. We have reached the point where 50% of our population collects benefits… which means that the other 50% are paying these benefits, this has been well publicized. The obvious problem here which doesn’t get publicized is that more and more middle class families, BECAUSE they are paying these benefits while being paid in inflating Dollars are getting “pushed” into the status of HAVING to collect. There is not enough left for them to give… so they take. I am not saying this is a bad thing for a family that cannot make it anymore, I am just saying that they are being “forced” and thus swelling the rolls of “takers” and thinning the rolls of “payers.”
Of course, the crooked politicians won’t change anything until they have to. Well, NOW they pretty much have to because the standard of living has so eroded away that “average” is no longer enough. Something must, and will change because there is no longer the ability of politicians to hide the cumulative effects of inflation. Inflation has so gutted the system that we now face a system wide “reset”. It is THE only option left that can right the cumulative wrongs. At the core of all of these “wrongs” is inflation. This has always happened in the past and will always happen in the future. Whenever a false currency that is controlled by the rocket scientist bankers is introduced… they will abuse their power and position. It is no different than giving a bottle of whiskey to an alcoholic or a tomahawk to an Indian!