How Inflation Destroys Civilization, by Nick Giambruno.
I think inflation is the primary factor driving this … unstoppable trend towards more socialism in the US. … Americans feel squeezed because the cost of rent, medical insurance, and tuition, as well as other basic living expenses, is rising much faster than their wages.
This creates very real problems for ordinary people. In response, more and more turn to Santa Claus politicians that promise supposed freebies, like a $15 minimum wage or universal basic income.
This is all a predictable consequence of the US abandoning sound money.
By every measure—including stagnating wages and rising costs—things have been going downhill for the American middle class since the early 1970s.
August 15, 1971, to be exact. This is the date President Nixon killed the last remnants of the gold standard.
Since then, the dollar has been a pure fiat currency. This allows the Fed to print as many dollars as it pleases. And — without the discipline imposed by some form of a gold standard — it does precisely that. The US money supply has exploded 2,106% higher since 1971. …
Inflation allows the finance sector, which controls the manufacture of new money, to reap most of the gain from newly manufactured money. Predictably, asset shufflers have swallowed most of the productivity gains in real wealth since 1971. But the process is subtle, most people have no idea, and the media never mentions it.
This is why millennials and millions of others are gravitating toward socialism.
They feel the economic pain of inflation every day. They know it’s becoming harder and harder to maintain a middle-class lifestyle. They just don’t understand why. So, they succumb to the siren’s call of freebies.
Perverse as it is, the policies demanded by people suffering from inflation create even more inflation.
Inflation has a way of perpetuating itself. The more inflation reduces living standards, the more people push for programs that create even more inflation. This includes things like universal basic income and a higher minimum wage… which in turn creates a cycle of inflation. …
It’s not going to improve from here:
The reason is simple: a growing majority of US voters are addicted to the heroin of government welfare. An estimated 47% or so of Americans already receive some form of government benefit. …
When you count everyone who lives off of political dollars, we’re already well north of 50% of the US population. In other words, the US has already crossed the Rubicon. There’s no going back.
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