If you were to take the value of the dollar in 1800 as a baseline, what do you think it's value would be today? Think about it while you consider the following actions taken by the U.S. government in the years between 1800 and 2009 (Thanks to Sean W. Malone for this background.):
1800-1815: The value of the dollar was tied to the value of gold, i.e., we were on the gold standard. After an initial increase in value, the dollar declined to $0.93 as the War of 1812 took its toll in destruction of resources, as wars are want to do.
1815-1850: 35 years of relative peace and an unfettered economy resulted in economic growth and an increase in purchasing power. The dollar was worth over $2.00 by 1850; a better than 200% increase in 50 years.
1850-1865: After a slight dip and subsequent recovery, the Civil War, in just 5 short years wiped out nearly all the increase of the previous 35 years. Both sides financed the war by printing money and raising taxes (and abandoning the gold standard). Losing 650,000 lives on both sides contributed to a loss of wealth. Value in 1865 = $1.11.
1865-1900: A return to the gold standard, together with the explosion of wealth created by the Industrial Revolution and the unleashing of Capitalism, saw a recovery by 1900 to the pre-war value of $2.04. This was a peak never to be seen again.
1900-1935: The Spanish-American War, WWI and the creation of the Federal Reserve as controller of the money supply saw the value of the dollar fall to $.083 by 1920. In the next 15 years, the Fed eased up on printing money and, despite the bursting of the bubble created by the Fed in 1929, increasing growth in technology helped to recover the value of the dollar to $1.22 by 1935.
1940-1971: WWII was funded by an explosion of money printed by the Fed, followed by Korea and Vietnam. Richard Nixon officially ended the Gold standard in 1971. There has not been an objective value of money since.
1971-2009: Between the end of WWII and 2009, the supply of money increased by over $8 trillion. During that period, the U.S. saw 10 recessions, nearly continuous military involvement overseas and an explosion of the welfare state. As a result, the value of the dollar in 2009, compared to the 1800 benchmark, was $0.08. That's 8 cents. Think about that the next time a politician tells you we are better off now than any time in history. Our "wealth" is a mirage and the American dream is about to end.
Friday, October 29, 2010
Saturday, November 28, 2009
Capitalism? Where?
Because the economic recovery is slower than Obama hoped for. Capitalism is still being blamed for it's cause. The next time you hear that, ask what country they are talking about. It certainly can't be the U.S. We've never had a fully free economic system that Capitalism would bring, certainly not since the 1800s.
The beginnings of the betrayal in contemporary America lie in President Abraham Lincoln's many violations of rights during the Civil War, continuing with the "progressive" movement of the late 1800s and the follow-up garroting of the Constitution by the Sherman Antitrust Act, the creation of the Federal Reserve, the 16th Amendment, President Franklin Roosevelt's abhorrent New Deal, the abolition of the gold standard, the institution and expansion of "welfare" programs under President Lyndon Johnson, the aggrandizement of eminent domain by the feckless Supreme Court, the immense grand larceny of the current administration, a perennially corrupt Congress and much more.
Proper laws allow one to know, in advance, what actions are illegal. By contrast, anti-trust laws are improper because the courts have established that one cannot legally charge prices which are either higher, lower or the same as a competitor's. The first is "evidence of monopoly;" the second is "predatory pricing;" and the third is "collusion." How can businesses function legally under such laws?
They cannot, except by government collusion. While dishonest businessmen seek government favors to hobble their competition, honest ones must seek the same in self-defense. The same activities which are prosecuted under the anti-trust laws are touted as being "in the public interest" when practiced by the politically favored.
The beginnings of the betrayal in contemporary America lie in President Abraham Lincoln's many violations of rights during the Civil War, continuing with the "progressive" movement of the late 1800s and the follow-up garroting of the Constitution by the Sherman Antitrust Act, the creation of the Federal Reserve, the 16th Amendment, President Franklin Roosevelt's abhorrent New Deal, the abolition of the gold standard, the institution and expansion of "welfare" programs under President Lyndon Johnson, the aggrandizement of eminent domain by the feckless Supreme Court, the immense grand larceny of the current administration, a perennially corrupt Congress and much more.
Proper laws allow one to know, in advance, what actions are illegal. By contrast, anti-trust laws are improper because the courts have established that one cannot legally charge prices which are either higher, lower or the same as a competitor's. The first is "evidence of monopoly;" the second is "predatory pricing;" and the third is "collusion." How can businesses function legally under such laws?
They cannot, except by government collusion. While dishonest businessmen seek government favors to hobble their competition, honest ones must seek the same in self-defense. The same activities which are prosecuted under the anti-trust laws are touted as being "in the public interest" when practiced by the politically favored.
Friday, July 10, 2009
Stimulus Insanity
Commentary by Robert Tracinski (TIA Daily)
Stimulus Insanity
The Democrats are about to provide proof that they are insane: they are considering another giant stimulus bill, spending hundreds of billions more dollars that the federal government doesn't have.
If insanity is doing the same thing over and over again and expecting a different result, then a second stimulus—justified by the fact that the first one didn't work—is economic insanity. And a second stimulus is also political insanity. It is the best thing the Democrats could do to really inflame the tea party movement—which would mobilize all-out against the bill—and earn that movement a wider following.
...
But of course the purpose of the "stimulus" was never to stimulate the economy—even if massive government spending were capable of doing that, which it isn't. Instead, the stimulus had two purposes: to permanently increase funding to a whole wish list of favorite leftist entitlement programs, and to deliver lots of goodies to constituents just in time for the mid-term election, so that congressmen can buy votes by pointing to all of the loot they brought back to their districts. That's the real reason most of the "stimulus" spending doesn't kick in until the middle of next year—too late to prevent the recession, but just in time to "stimulate" votes for Democratic congressmen.
Somehow, this time I think it's going to backfire on them.
Stimulus Insanity
The Democrats are about to provide proof that they are insane: they are considering another giant stimulus bill, spending hundreds of billions more dollars that the federal government doesn't have.
If insanity is doing the same thing over and over again and expecting a different result, then a second stimulus—justified by the fact that the first one didn't work—is economic insanity. And a second stimulus is also political insanity. It is the best thing the Democrats could do to really inflame the tea party movement—which would mobilize all-out against the bill—and earn that movement a wider following.
...
But of course the purpose of the "stimulus" was never to stimulate the economy—even if massive government spending were capable of doing that, which it isn't. Instead, the stimulus had two purposes: to permanently increase funding to a whole wish list of favorite leftist entitlement programs, and to deliver lots of goodies to constituents just in time for the mid-term election, so that congressmen can buy votes by pointing to all of the loot they brought back to their districts. That's the real reason most of the "stimulus" spending doesn't kick in until the middle of next year—too late to prevent the recession, but just in time to "stimulate" votes for Democratic congressmen.
Somehow, this time I think it's going to backfire on them.
Monday, June 29, 2009
Be Very Afraid
Another gem out of Washington that basically let's the government do what ever the heck it wants (go ahead - I dare you to read it; I know your Congressman didn't). Want a new car? Uncle Sam has a check for you. Want to sell your home? First you have to pass an energy inspection to make sure you are "energy compliant". Want to turn on your air conditioner? Better hope the energy czar isn't watching via the "smart grid" that will connect to all your appliances. "Atlas Shrugged" and "1984" all rolled up into one. Paid for how? Need I ask?
I can't wait for government health care.
I can't wait for government health care.
Friday, June 26, 2009
I Kid You Not
Our Supreme Leader said the following about the violence in Iran over the "elections":
"The Iranian people are trying to have a debate about their future."
If things keep going like they have been here, we may be having a similar "debate".
"The Iranian people are trying to have a debate about their future."
If things keep going like they have been here, we may be having a similar "debate".
A Man for All Seasons
Here's a short list of what our President has become in a few short months (in no particular order):
Bank Manager
Financial Advisor
Doctor
Hospital Administrator
Medical Insurance Provider
Mortgage Lender
Car Dealer
Auto Manufacturer
Climate Changer
Emergency Producer
Muslim Suckup
European Suckup
Korean Suckup
South American Suckup
Cuban Suckup
Pirate Sniper
Media Director
Comedian
Union Leader
Evangelist
Border Guard
I could go on. I hope I didn't leave out your favorite. In his spare time he manages to be President of the United States, or at least what remains of it. And what exactly is the President authorized by the Constitution to do? Here's the complete list (with grades)
1. Act as Commander in Chief (F)
2. Grant reprieves and pardons (A+, just look at all the terrorists he's let go so far)
3. Make treaties (I - Incomplete, none so far)
4. Appoint ambassadors and other public ministers & consuls (C - at least he got Hillary out of the country)
5. Nominate Supreme Court Judges (F)
6. Appoint all other officers which are established by law & vested in the President by Congress (F)
It's number 6 that has me worried. Either he's acting on his own appointing car czars and such to enable his power grab (unconstitutional), or Congress has slipped a fast one past us in one or more of the stimulus bills granting the Obamunist unlimited power to "fix" America. It took 25 years, but 1984 has arrived. By the time this bunch is through, the rest of the world won't have anybody left to mooch off of.
Bank Manager
Financial Advisor
Doctor
Hospital Administrator
Medical Insurance Provider
Mortgage Lender
Car Dealer
Auto Manufacturer
Climate Changer
Emergency Producer
Muslim Suckup
European Suckup
Korean Suckup
South American Suckup
Cuban Suckup
Pirate Sniper
Media Director
Comedian
Union Leader
Evangelist
Border Guard
I could go on. I hope I didn't leave out your favorite. In his spare time he manages to be President of the United States, or at least what remains of it. And what exactly is the President authorized by the Constitution to do? Here's the complete list (with grades)
1. Act as Commander in Chief (F)
2. Grant reprieves and pardons (A+, just look at all the terrorists he's let go so far)
3. Make treaties (I - Incomplete, none so far)
4. Appoint ambassadors and other public ministers & consuls (C - at least he got Hillary out of the country)
5. Nominate Supreme Court Judges (F)
6. Appoint all other officers which are established by law & vested in the President by Congress (F)
It's number 6 that has me worried. Either he's acting on his own appointing car czars and such to enable his power grab (unconstitutional), or Congress has slipped a fast one past us in one or more of the stimulus bills granting the Obamunist unlimited power to "fix" America. It took 25 years, but 1984 has arrived. By the time this bunch is through, the rest of the world won't have anybody left to mooch off of.
Thursday, April 23, 2009
I am an Extremist for Freedom
As the department of Homeland Security comes after me and my fellow extremists, keep this in mind: Barry Goldwater, in his 1964 speech accepting the Republican Party's nomination to run for president, responded to repeated accusations of "extremism" as follows:
"I would remind you that extremism in the defense of liberty is no vice! And let me remind you also that moderation in the pursuit of justice is no virtue!"
Read here the rest of one of the truly great political speeches ever given by an American. I've always thought that a Goldwater presidency followed by a young Reagan would have set this country on a very different path. We certainly wouldn't be headed down the cliff we are today.
"I would remind you that extremism in the defense of liberty is no vice! And let me remind you also that moderation in the pursuit of justice is no virtue!"
Read here the rest of one of the truly great political speeches ever given by an American. I've always thought that a Goldwater presidency followed by a young Reagan would have set this country on a very different path. We certainly wouldn't be headed down the cliff we are today.
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