3.5% vs. 7%

Let's talk about inflation.

http://www.chrismartenson.com/crashcourse/chapter-10-inflation
http://www.chrismartenson.com/crashcourse/chapter-16-fuzzy-numbers

For ease, we're going to use some numbers that make my life easy, not necessarily based on reality (but close - in my opinion).  3.5% inflation would mean that roughly every 20 years, prices double.  7% inflation means that every 10 years prices double.

So, over the last 10 years, how many American's paychecks doubled?  This is what would need to happen at 7% inflation in order to maintain standard of living.  Monetary policy is based at the Federal Reserve, a private bank that basically controls our money without any actual Federal oversight.

If you want to know why $20/hr isn't a decent wage any more, there's your answer.  $20/hr for a family of 4 is considered "Low-Income" if not poverty.

The REALLY BAD news:  I haven't had a raise in 8 years - which means my pay has been almost cut in half due to inflation.  In 10 more years, my wage will need to nearly QUADRUPLE in order for me to maintain my standard of living of 10 years ago.  That's not going to happen.

And what about people stuck at minimum wage?

This is the nature of annual percentile growth - it's exponential. 2, 4, 8, 16, 32, 64... etc.

So if inflation is reported at 3-3.5% annually, while it's actually around 7%, you're missing out on a LOT.  Considering that the purpose of an economy is to allow people to work so that one day in the future they will no longer have to work, we all live in a complete and total SCAM.  Making $20/hr today is equivalent to making $160/hr in 30 years.  Unless you can make your money grow at/near/above the actual rate of inflation, you are working your ass off to LOSE MONEY in the long run.  That's why people spend everything they make - because it's not worth saving.

There are a lot of doomsayers who think that as some other information comes out, that we will face a revolution... no, we won't.  See, people may not KNOW this information, but they have a deep sense of it, and to tell them will only make them say "Oh, wow, yeah it makes sense now", and then go back to posting on Twitter/Facebook.


8 parts: one of the most fascinating things I have ever watched:
http://www.albartlett.org/presentations/arithmetic_population_energy_video1.html
http://www.albartlett.org/presentations/arithmetic_population_energy_video2.html