The latter is the problem. Go back to the Chinese working for .30 cents per hour and add Mexican labor at $1.25. Raising U.S. wages will only make American workers less competitive, resulting in greater unemployment.
Let me explain inflation. In economics, inflation is described as “an increase in the general level of prices of a given kind, in a given currency.” General inflation is described as “a fall in the purchasing power of money within an economy.” Or, a buck don’t go as far as it used to.
While the above is the text book description of inflation, I prefer the following, stated by futurecasts online magazine : “Monetary inflation is a kind of tax with which government — by expanding the money supply — transfers wealth from its people to itself. It also results in the transfer of enormous amounts of wealth from the hands of ordinary people to the hands of those speculators shrewd enough to take advantage of the price volatility inflation causes in the markets.”
So what is the best way to protect yourself from inflation? That is a subject that deserves a little more ink than we have space for today, so stay tuned for the next episode of King of Simple News. Together, we’ll beat this thing. Well, in any case, we’ll make it better.
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
