09-27-2006, 01:04 AM
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#10 (permalink)
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TMS Prius Expert
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Quote:
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Originally Posted by ShiningArcanine
That is due to inflation. If the federal government would stop counterfitting money everytime people use credit cards, and instead require that banks spend their own money everytime people use credit cards, banks would have to sustain losses when people declare bankruptcy, eliminating inflation, as when x amount of gold backs y amount of money, and someone declares bankruptcy, x remains constant and y increases, depreciating the value of each unit of y and causing two things. The first being that you pay on average more for each product and service than you used to pay units of y. The second being that you will earn on average more units of y than you used to earn. These two effects cancel, but due to things like overhead, the cancellation of these two effects is not the ideal equality that you would have in theory, and thus in general, you will be poorer than you were prior to the government's counterfitting. This of course, assumes equal population and economic growth rates, so in reality, you are better off, but much less than year to year measurements of the GDP would have you believe, and not because of the government's counterfitting (which is inhibitory to rises in the standard of living).
That is why things become more expensive over time. It is immoral, it is unconstitutional and it is insane, but that is how things have been ever since Flanklin Delano Roosevelt came to power.
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Not quite. I was actually meaning that our first two Toyotas were Corollas which are cheaper than the current two Toyotas which are the Camry and Prius
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OEM Cargo Mat, OEM All-Weather Mat, LED ext/int lights, 5000K HID, OEM Fogs, Euro Mudguards
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