Unemployment Falls Only to 8.1%

[SteVo+ 3,702]

If not for WW2, there's no telling when the economy would have recovered.

 

Finally, a liberal who realizes that we didn't get out of the Depression because of FDR.

[OSUViking 505]

Finally, a liberal who realizes that we didn't get out of the Depression because of FDR.

 

It's fairly obvious that the only thing that brought the economy back was the massive war production that swept the nation. Honestly, anyway who says otherwise needs to check up on their history.

[WindyCitySports 407]

I don't know why you RP people think the gold standard equates to no inflation. That's literally never been the case.

I don't think that. I think that the dollar would only inflate as much as gold does, which is very little compared to what we have got now. The dollar is worth 4% of what it was at the turn of the 20th century. And only getting more worthless.

[Guest Phailadelphia]

I don't think that. I think that the dollar would only inflate as much as gold does, which is very little compared to what we have got now. The dollar is worth 4% of what it was at the turn of the 20th century. And only getting more worthless.

 

Worthless relative to what?

Edited September 14, 2012 by Phailadelphia

[WindyCitySports 407]

Worthless relative to what?

Worthless relative to what it was when we received it. You realize that inflation is literally theft of purchasing power? When I receive my salary, I perceive the money to be worth whatever the dollar is worth at that time. For example, I may calculate that it will buy me 4 weeks of groceries. A few years later, the same amount of money will buy me a few days less of groceries, and so on. And now, 100 years later, the dollar will only buy 4% of what it could then. And that number continues to decrease.

[Guest Phailadelphia]

Worthless relative to what it was when we received it. You realize that inflation is literally theft of purchasing power? When I receive my salary, I perceive the money to be worth whatever the dollar is worth at that time. For example, I may calculate that it will buy me 4 weeks of groceries. A few years later, the same amount of money will buy me a few days less of groceries, and so on. And now, 100 years later, the dollar will only buy 4% of what it could then. And that number continues to decrease.

 

Prices today would be higher relative to 1900 regardless of a commodity-backed currency.

 

You people act like our currency is facing double digit inflation rates or something. You're trying to fix a problem that, quite frankly, doesn't actually exist. All things considered, it would create more problems.

Edited September 15, 2012 by Phailadelphia

[WindyCitySports 407]

Prices today would be higher relative to 1900 regardless of a commodity-backed currency.

 

You people act like our currency is facing double digit inflation rates or something. You're trying to fix a problem that, quite frankly, doesn't actually exist. All things considered, it would create more problems.

You're delusional. 3-4% inflation annually is actually costly. The dollar was much better off when it was back by gold. And the worst is yet to come. With the downgrading of our credit rating an our financial instability, which could turn into another collapse. There are a lot of economists out there, but few predicted the 2008 recession, and the ones who did are predicting yet another financial breakdown of a greater magnitude, which will lead to a collapse of the dollar. QE3 basically just guarantees that that will happen as does the soon-to-be-proposed stimulus bill and the next GM bailout.

Edited September 15, 2012 by WindyCitySports

[Guest Phailadelphia]

You're delusional. 3-4% inflation annually is actually costly. The dollar was much better off when it was back by gold. And the worst is yet to come. With the downgrading of our credit rating an our financial instability, which could turn into another collapse. There are a lot of economists out there, but few predicted the 2008 recession, and the ones who did are predicting yet another financial breakdown of a greater magnitude, which will lead to a collapse of the dollar. QE3 basically just guarantees that that will happen as does the soon-to-be-proposed stimulus bill and the next GM bailout.

 

1. The dollar, and subsequently the price level, were WAY more volatile when backed by gold. The economy was also more unstable.

2. Our credit was only downgraded temporarily (its back to AAA now) and happened because Congress is retarded, not because we use fiat currency.

3. So would every other currency of developed economies. Moot point.

4. Money velocity remains unchanged and the country is nowhere near full employment. There is absolutely no threat of inflation right now. FWIW, QE3 is small relative to QE1 and QE2 and those didnt generate high inflation.

 

You might want to see this, in which not a single (re: ZERO) economist vote yes in favor of a return to the gold standard. Anyone who believes its a good idea is, as you say, delusional.

 

Or if you prefer pictures:

Edited September 15, 2012 by Phailadelphia

[War Eagle714 16]

Wow, this topic is still going strong? I have to admit the subject has just taken a back seat to the fact the Middle East remains out of fucking control and the President doesn't acknowledge the problem for what it really is.