I remember when the conservative movement in the 1960’s fought to get America on the gold standard or at least allow citizens to own gold. The Roosevelt Administration used the old of the gold standard as one of the means of controlling the economy and citizens. Today, we are free to buy and sell gold, at free market prices, not at a price set by Washington.
“If, in 1967, a person were earning $15,000 a year, that amount of money would, at today’s price of gold, be worth $514,285.71.
If an individual’s annual wage in 1967 were $20,000, the value of that $20,000 would, in terms of gold, be worth $685,714.29.
How many people in America today earn between $342,857.14 and $685,714.29? Not very many.
This shows another lesson of government. It takes money from us by raising taxes and adding to the cost of goods. It also steals from us by using inflation as a method of raising taxes—the higher the price of a good, more taxes collected and more government has to spend. Inflation is good for government and bad for families and jobs. Think about it…did anyone explain how inflation caused by government action is as bad as taxes?
GOVERNMENT ECONOMIC POLICY IS ROBBING AMERICANS
By Richard Colman, California Political News and Views 2/1/17
An annual salary of $10,000 a year in 1967 — 50 years ago — was not great but adequate enough to pay one’s bills and raise a family.
In 1967, the price of gold was $35 an ounce. The federal government set the price at that level.
In 1967, $10,000 would have had a value of 83.3 ounces of gold.
Today, the price of gold is about $1,200 an ounce.
So what would that 83.3 ounces of gold be worth today? Answer: $342,857.14.
If, in 1967, a person were earning $15,000 a year, that amount of money would, at today’s price of gold, be worth $514,285.71.
If an individual’s annual wage in 1967 were $20,000, the value of that $20,000 would, in terms of gold, be worth $685,714.29.
How many people in America today earn between $342,857.14 and $685,714.29? Not very many.
In 1933, the federal government, under President Franklin D. Roosevelt, fixed the price of gold at $35 an ounce. The ownership of gold, for Americans, was prohibited. (There were some exceptions).
In 1975, Congress passed legislation allowing Americans to own gold.
The American dollar over 50 years (1967 to 2017) has, in terms of gold, dropped in value.
Inflation, taxes, and a lack of sound monetary policy has made government (fiat) money less and less valuable over the last 50 years.
The time for sound money — money backed by gold — has arrived.
If one’s boss offers to pay an employee in gold, instead of American dollars, the employee might, based on the experience of the last half century, want to be paid in gold.
Government has a tendency to overtax and overspend. In 1967, the federal budget was about $100 billion. Today, the budget is $4 trillion and rising. Thus, over 50 years, government spending has risen 4,000 times (400,000 percent). Taxes have also gone up.
If today, an American feels poorer than he did 50 years ago, blame the situation on the federal government‘s economic policies.
About Stephen Frank
Speak Your Mind