Quote from: o_e_l_e_o on June 22, 2020, 03:40:14 PM

Quote from: Darker45 on June 22, 2020, 02:48:41 PM

it remains true that even a tiny and seemingly insignificant amount which people can easily toss around can still provide you a decent food.

Over 12% of Americans are living in poverty. It certainly isn't a tiny or insignificant amount to them.

Poverty is a handy word. Even in the world's richest countries per capita, there is poverty.

Correct me on this if I'm wrong but I would say that the face of poverty in the US is rather pretty.

Certainly, millions fall below poverty line but that line is quite high.

Quote

Quote from: Darker45 on June 22, 2020, 02:48:41 PM

So, if the USD is losing 90% of its value since 1950, I would also assume that people's usual salary has also increase around 90% since then.

That's not how percentages work....

...The average family has significantly less purchasing power than they did a generation ago.

That's correct. I was wrong about that percentage thing. I should have meant x rather than %. I was trying to say that if the prices of goods rise 90x, or the purchasing power of the currency is down 90x, the disposable money must have also risen around 90x. Apparently, a lot of things have to be factored in so that the result is not in perfect accordance to the target or design.

But the increase of the prices of goods and services is not just brought or influenced by monetary inflation. You cannot point all the blaming fingers to it. As a matter of fact, I would say it plays a relatively minor role. Goods and services become more costly over time primarily due to the rising demand and supply shortage, which are of course most often intertwined.

I would even go as far as saying that even if the money printing was done at the minimum or most reasonable level, the prices of goods and services would still have increased at around the same rate.