I don’t think only the only factor of inflation is going off of the gold standard.
The printed money was used to crush any social change around the world in fear of other socialist states forming in the supposedly “cold” war. Also, crushing unions reduced the percentage of pay that workers got for their labor, increasing that pay gap.
Corporations bribing governments allowed free trade across borders to countries with weaker environmental regulations. The corporations layed off and de-industrialized the USA while keeping the ability to profit from the hyperexploited labor of developing nations.
if you are citing Hyack who advocated for government regulations to favor businesses, why would any of these corporations not write the laws to crush small competitor competition, crush unions, control the federal reserve? The return on investment of lobbying the government to make moves in a corporation’s favor is quite impressive. Why do you think that the boards of these corporations would not persue what is most profitable?
Overlay that chart with corporate profits and it all makes sense.
It would be the same chart because productivity surplus is going to corporate profits but that’s not really the cause.
If you were paid 1/20th of an ounce of gold per hour in 1971 you’d get about $2/hr. (~$15 in 2022) (gold @~40/oz)
Today if you were paid that same gold per hour you’d be getting about $1,000/hr (gold @~$20k).
After dropping the gold standard people, paid the same amount of dollars, could suddenly buy less than they could when the dollar was backed by gold. Because they printed more money all the money was worth less.
Look at the stagflation we have going on now. The economy is stagnating but the central banks keep printing money which devalues it.
If you’re not getting 2% interest on your money then you’re losing money in real terms. And this is by design.
“Inflation” is “monetary inflation”, that is an increase is the supply of the currency. On the central bank can cause M0 inflation. Commercial banks contribute to M2 inflation via fraction reserve lending.
TLDR: We went off the gold standard and handed everything over to the bankers who immediately used, and continue to use, that power to enrich the upper class.
Probably something related to the bretton woods conference. That is the only major economic event that took place around that time that I can think of.
Edit: I meant the bretton woods system being dissolved. The coference happened much earlier sometime in the 1940s.
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I would love that! Can someone skilled in graphics software do it?
https://wtfhappenedin1971.com/
Why is there a Hyack quote at the end of that page?
Are you really asking why there is a quote about government funny money on a page entirely dedicated to the problems made by government funny money?
I don’t think only the only factor of inflation is going off of the gold standard.
The printed money was used to crush any social change around the world in fear of other socialist states forming in the supposedly “cold” war. Also, crushing unions reduced the percentage of pay that workers got for their labor, increasing that pay gap.
Corporations bribing governments allowed free trade across borders to countries with weaker environmental regulations. The corporations layed off and de-industrialized the USA while keeping the ability to profit from the hyperexploited labor of developing nations.
if you are citing Hyack who advocated for government regulations to favor businesses, why would any of these corporations not write the laws to crush small competitor competition, crush unions, control the federal reserve? The return on investment of lobbying the government to make moves in a corporation’s favor is quite impressive. Why do you think that the boards of these corporations would not persue what is most profitable?
https://wtfhappenedin1971.com/
Incredible. But what actually did happen to cause the wealth gap to suddenly and rapidly start to widen?
Getting off the Gold Standard.
If you were paid 1/20th of an ounce of gold per hour in 1971 you’d get about $2/hr. (~$15 in 2022) (gold @~40/oz)
Today if you were paid that same gold per hour you’d be getting about $1,000/hr (gold @~$20k).
After dropping the gold standard people, paid the same amount of dollars, could suddenly buy less than they could when the dollar was backed by gold. Because they printed more money all the money was worth less.
Look at the stagflation we have going on now. The economy is stagnating but the central banks keep printing money which devalues it.
If you’re not getting 2% interest on your money then you’re losing money in real terms. And this is by design.
“Inflation” is “monetary inflation”, that is an increase is the supply of the currency. On the central bank can cause M0 inflation. Commercial banks contribute to M2 inflation via fraction reserve lending.
TLDR: We went off the gold standard and handed everything over to the bankers who immediately used, and continue to use, that power to enrich the upper class.
Bring back bimetalism! Save the middle class!
Probably something related to the bretton woods conference. That is the only major economic event that took place around that time that I can think of.
Edit: I meant the bretton woods system being dissolved. The coference happened much earlier sometime in the 1940s.