Posted on 07/31/2010 4:28:56 PM PDT by citizenredstater9271
Dying of Money: Lessons of the Great German and American Inflations
...
In the United States from 1960 to 1968, even while the total number of productive workers in all the fundamentally useful industries remained constant at 27 million, 12 million more workers found some other kind of new place on the national payroll. There were over a million more nonproduction workers in the productive industries; a million more in military service; 3.5 million more government employees; 2.7 million more employees in wholesale and retail trade; and 3.9 million more in banking, securities trading, financial services, and other miscellaneous services. Paperwork and office workers proliferated, as they did in Germany. The Xerox machine and the IBM machine, both paperwork machines, were the twin monuments of the decade. Bank buildings and office buildings were the most conspicuous form of construction. The office equipment industry was the most glamorous of industries. A prodigious 1131 billion of the nation's apparent growth from 1960 to 1968, or 36 percent of it, was found merely in increased government expenditure. Another $42 billion was found in the increased cost of wholesale and retail distribution, which compares with the thriving growth of "middlemen" in the German inflation. Still another $41 billion of apparent growth was found in auxiliary activities like financial services. Not only did fringe activities like these show the largest growth and the most new jobs, but they also showed the most price inflation which meant that they were generally more lucrative than productive work. As previously noted, the average price inflation in this half of the economy was 27 percent while that in the other half was only 6 percent.
Very little of all this activity added anything to the well-being of the citizen-consumer if he did not hold a job in these activities. The conclusion is inescapable that very much of the frenzied economic activity of the American boom must have been for all practical purposes useless. ...
To say that millions of nonproductive jobs in the inflation were useless is not to say that their holders were useless. Exactly the opposite is true. Many of these jobs were among the system's better-paid jobs, and their holders tended to be among the nation's better men. People are not at fault in doing useless work. They merely go where the rewards are, and the government's inflationary forces are what place the rewards. It is a tragic fact that millions of the nation's best people were led by the government's stimuli to invest their lives in pursuits that perhaps should not have existed, and which might well not exist whenever the government's inflation either ended or fell apart.
America will go down the toilet unless we END THE FED and go back to gold. Dr. Paul CAN and WILL save us.
As to "who gets the free money", maybe you should ask why it is that in 1933 1 US dollar was worth 0.715 ounces of silver and today it is worth far less than that.
The concept that the government, in debasing the currency, steals value from all of us, and then spends money (gives free money) on privileged suppliers and in the case of the recent bailout, gives money wholesale to favored banks, should be one simple enough for you to grasp.
Maybe a "patriot" like yourself ought to read the Constitution - hint - Article I section 10.
Horsehockey. All politicians are in it for their own glory. Anyone who thinks otherwise is a naif.
I'd prefer an answer to my question.
The concept that the government, in debasing the currency, steals value from all of us, and then spends money (gives free money)
So now spending is the same as giving? LOL!
in the case of the recent bailout, gives money wholesale to favored banks
To which banks do you feel the government "gave" money? Do you have a link to back up your feelings?
Article I section 10.
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it's inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress.
No State shall, without the Consent of Congress, lay any duty of Tonnage, keep Troops, or Ships of War in time of Peace, enter into any Agreement or Compact with another State, or with a foreign Power, or engage in War, unless actually invaded, or in such imminent Danger as will not admit of delay.
Already read it. Maybe you could show me the part that discusses free money?
LOL! That's funny.
Derp derp a derp!
It’s easier than posting proof for their silly claims.
And Ron Paul endorsed Cynthia McKinney.
Birds of a feather...
That's a hyperbolic pantload.
Stop worshiping the guy for crying out freakin' loud. He's a politician.
Aw, cripes, now they'll all be in here doing their worship dance and stuff.
....”The left has Cynthia McKinney, we have Ron Paul.
And Ron Paul endorsed Cynthia McKinney.
Birds of a feather”....
Yup. I wonder if any of these Paul people have ever considered what most know instinctively....
(How can I put this “nicely” - I can’t) Do any of these (people) realize that “Dr. Paul” may have, umm, umm, perhaps just maybe, ummm, mental health issues?
Please explain why such a “patriot” can not even get 5% of the GOP to vote for him, let alone 5% of the country? (Yuppers, we’re all wrong, not “Dr. Paul”). His Lil’ Nazi supporters certainly go hand and hand with his policies. Note to Paulies. 1930 is over.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.