US inflation can be traced back to 1913, when Woodrow Wilson passed the 16th Amendment allowing Congress to tax income. In 1913 the cost of a loaf of bread was 2 cents. Wilson also passed the Federal Reserve Act that transferred Congress’ power to “coin money” to Fabian-Socialist control of the US money supply that bares little resemblance to Free Market Capitalism based on Supply and Demand setting Prices. The result was a “free-spending” Congress capable of destroying the US economy.
From 1700 to 1913 the daily wage for an unskilled laborer was $1 per day. Families bought their own land, grew their own food, raised their own livestock and built their own cabins. By 1850, families were moving to cities to work in factories. Roads and canals had been built to move goods. Railroads and Steamboats were being built to move goods.
In 1900, the average factory wage was 20 cents per hour. In 1900 the average monthly family income was $23 per month.
In 1920 the average household income was $3,269.40 per year. In 1925, the model T Ford was priced at $290 or 9% of household income. Everybody bought Model Ts.
In 2020 the average US household income was $67,521. Per year. The average price of a used car in the US was $22,000 or 33% of household income.
In 2023 the average US household income was $49,341.13 per year. The average price of a used car in the US is $27.000 or 55% of household income.
In my own experience, in 1965 a good family income was $10,000 per year. The average price of a new car was $2.000. My mortgage payment was $150 per month.
By 2000, a good family income was $100,000 per year. The average price of a new car was $21,000. Mortgage payments were $1500 per month.
In 35 years from 1965 to 2000, family income had to increase 10-fold to maintain a good family income.
I warn you that if we do not stop inflation, a good family income could reach $1 million per year by 2040.
We are witnessing the end of the US economy and the end of the US middle class. We need to stop printing more money and return to Free Market Economics to allow supply and demand to determine prices. We need to balance the federal budget to allow the National Debt to be reduced from its current $34.5 trillion. We can no longer continue to put federal overspending on the US credit card. Interest on the federal debt costs are approaching $1 trillion per year. We cannot reduce Social Security, because great grandparents are currently funding their kids. We can hope that Medicare and Medicaid costs can be reduced with patient-initiated preventive care and less expensive cures for illnesses. We can reduce federal government spending by $3 trillion by eliminating $1 trillion in foreign aid, $1 trillion in federal grants and $1 trillion in unnecessary spending for Climate Change and illegal immigrants.
US lower wage labor shortages are being filled by adults who live with their parents and can walk to work. We need to move teen unemployment from 10% to 5% to allow them to learn to work.
Norb Leahy, Dunwoody GA Tea
Party Leader
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