Poverty was something that used to impact the few in America. Growing up I’d see the commercials on tv to donate just one dollar a day and I could change someone’s life in whatever country. That the poverty was running rampant in that part of the world.
Boy have times changed. Poverty is now running rampant in America. Homelessness is on the rise in just about every city, especially after Covid hit, but honestly even before it hit. The “greatest economy ever” as President Trump called it couldn’t have been further from the truth. Numbers can be massaged to show just about anything but the facts were the economy was not the greatest ever, in-fact it’s impossible to have a strong economy without high money velocity.
But this isn’t an article to debate the strength of the economy, it’s to show you how you’re being driven into poverty. Why? I’m not sure why the Federal Reserve, the Treasury Department, the politicians want us to be poor but they’re pulling it off. The middle class has never been so small and the disparity between rich and poor never so wide.
But with inflation, high levels of debt and the continual money printing that’s happening is destroying the purchasing power of the dollar. Sure the politicians don’t care, whatever amount of money is needed for the military or any other program they want to fund they can just print. As the Federal Reserve has recently admitted, the printing of dollars is endless, infinite.
No it’s not endless, it’s not infinite, at least not for you and I. We will take a look at the dollar’s purchasing power in a minute but first I must tell you the current inflation the government claims we are experiencing is so far from the truth. They’ve recently claimed we have just 1.3% inflation, true inflation is between 8-9%, even an economics professor at Harvard agrees. The manner in which the government calculates inflation has changed over 20 times since 1980 and today doesn’t include food and fuel. How can you figure out true inflation without food and fuel costs, the two most needed things by consumers in America.
With that said let’s look at the Dollar’s purchaypower.
First since 1913, as you can see from the chart above it’s lost about 95% of its purchasing power.
Since 2010 it’s loss about 15% of its purchasing power.
And so far in 2020, with almost two months left, the US Dollar has lost 4.3% of its purchasing power. Think about that for a minute. The $100 you had in your pocket on Jan 1, 2020 will now only buy you $95.70 worth of stuff at the beginning of November 2020.
Welcome to poverty. 78% of people (before Covid) live pay check to pay check in America and 86% of people have less than $1,000 saved. If you’re one of the 22% not living pay check to pay check or one of the 14% with more than $1,000 saved God bless that’s awesome but here’s a warning, if you don’t make some smart changes your wealth will be inflated away!
