Good Thursday Morning!!!
1. Question – Are we being duped into thinking politicians are growing or just helping the middle-class?
2. Thought – The largest reason for the sinking middle and lower income classes has been the Federal Reserve Bank, which has been actively devaluing the dollar since the 1971 collapse of the Bretton Woods system that linked the dollar to gold. The Federal Reserve has hurt the poor and middle classes with both direct and indirect programs, and the indirect impact of inflation may be the most important, even if it is the hardest to measure.
Income disparity between the top one percent of Americans and everyone else hit an all-time low in 1974-75, according to Thomas Piketty’s figures, which was just after the 1973-74 recession and not long after the collapse of the Bretton Woods system that tied the U.S. dollar to gold. The early 1970s marked the commencement of an era of non-stop expansion of the money supply (inflation), resulting in rising prices that robbed poor and middle-class Americans on fixed incomes of much of their wealth and income. The dollar has lost 83% of its value since 1971. (The 99% Why Are They Barely Treading Water? by Thomas R. Eddlem, from The New American, May 4th, 2015 issue)
“Since 1980, guess how much the growth of income the 90% got? Nothing. None. Zero. In fact, it’s worse than that. The average family not in the top 10% makes less money than a generation ago.” (Senator Elizabeth Warren [D-Mass] in a January 7, 2015 speech to the AFL-CIO)
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rem – know the why behind the what!
Question & Thought & ANDs.