I
will start by taking for granted that most people feel that our
economy is struggling and that higher prices are being felt. But why
is our economy struggling?

One
of the biggest reasons is inflation. So, what exactly is inflation
and why is it a problem? Inflation has recently been redefined as a
rise in prices; however, real inflation is an increase in the money
supply (a.k.a. printing money and credit out of thin air), and this
leads to overall higher prices.

For
our dollar, the increase in the money supply has been alarming and
devastating to everyday Americans. The money-supply inflation has
been at about 15 percent, which is much higher than most Americans'
yearly pay raise. This is devastating to Americans because our
earnings and savings are worth less and less; for example, it takes
$3.60 to buy a gallon of gas instead of $2.

Another
problem with inflation is that it greatly benefits debtors (it is
easier to pay debts if there is more money to repay it), and our
government is the biggest debtor of all. Our government is supposed
to control the inflation; however, its current biggest incentive is
to continue inflating. Ultimately, the government causes more
inflation with things like deficit spending and bailouts of the
mostly rich investors in Bear Stearns, Fannie Mae, and Freddie Mac.
The bailouts are made possible by inflating the money supply, and the
pain is transferred from the investors to everyday Americans. These
bailouts are just like giving a sick drug addict a fix with more
drugs. Sure the addict feels good temporarily, but the addict only
gets worse.

I
challenge everyone to research inflation and its results, to research
how our Constitution applies to inflation, and to understand how the
policies of political candidates influence inflation and everyday
Americans.

 

Aaron
Gonzalez

Le
Claire

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