Why doesn't a dollar today buy you as much as it did in the year 1900?

Our problem is neither debt nor deficit but, more exactly, high debt interest expense plus crumbling infrastructure, chronic unemployment, potential inflation, and near-zero interest rates.

The cure:

1. To shrink the debt interest expense, stop auctioning bonds to finance budget deficits. This scam has redistributed trillions of dollars from middle class taxpayers to rich bond-holders.

2. Instead, do as Lincoln and FDR and leaders of every other great nation did in their wartime crises: print the money! Two of our greatest inventors and most conservative business men, Henry Ford and Thomas Edison, believed that government should create debt-free money for public projects. http://prosperityuk.com/2000/09/thomas-edison-on-g...

3. To end unemployment, spend the printed money heavily on much-needed infrastructure. (World War II unemployment rate was under 1 %.)

4. When unemployed labor becomes scarce, delay the infrastructure projects and raise interest rates to prevent harmful inflation and maintain permanent prosperity.

No more problems! Wasn’t that easy?

You are partially correct but there are other reasons. The average salary in 1900 was 438.00 a year or 8.42 a week. If you were in a building trade you got .37 an hour or 14.80 a week and a medical worker was paid 4.92 a week. An average home was 5092.00 and so on. Now people are paid so much more that prices reflect the cost of the employees and material and equipment and all that has gone up because of what the workers providing it are paid. Then too we were not buying fuel from other countries, we were relatively energy efficient back then. There are plenty of reasons to go around and wasteful government spending is definitely a part of it but not the only reason.

Sort of. Natural inflation occurs when a population grows and more printed currency is required. Also, some items have drastically increased in price (gas) because we realize today that they are valuable and limited resources, but in the early 20th Century we had no idea.

I better answer this question George B before I pop out to work :( US FED caused a massive devaluing of our currency by selling off our gold and printing more money than we should with nothing but our "good name" to back it up - and bara Hope you find the answer you're looking for George B!

Inflation

It's only a problem when prices go up while wages stay down. Gas cost 50 cents when I started driving in the late 70s, but I only made 2.25 an hour.

Because the minimum wage has gone up, creating the chief cause for inflation. If they raise the minimum wage again, groceries are going to be so expensive I personally will have to stop eating.

Yes but you could live on 50 cents for the whole week. Go figure

US FED caused a massive devaluing of our currency by selling off our gold and printing more money than we should with nothing but our "good name" to back it up - and barack insane 0bama is ruining that.

Because in the year 1900, your take home pay was $7.00 a week.

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