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Federal government spending during the 50s was less than half a trillion inflation adjusted and just crossed over a trillion dollars inflation adjusted since 1970.
Federal government spending up 4 times since 1970 inflation adjusted, 8 times since 1950 inflation adjusted.
The federal deficit that the nation runs yearly is the same as total federal government spending was in 1970.
Since the major expansion of govt spending in the 1930s, and then the huge deficit spending of WWII, we've paid down almost 0% of the national debt. There were a few years in the 1950s where we paid down 1 or 2 percent of it. The National Debt went down a very slight amount. Since then, we've never reduced the National Debt by a single penny. It's always increased, sometimes hugely. ZERO pay-down, every year since the late 50s.
Instead, most of the value of the debt (and everything else) has been "inflated away".
The millions of dollars we owed after WWII was a staggering amount, then. But today, millions of dollars is chump change.
And that's the reason the govt keeps inflation going. It greatly benefits those who borrow - they can borrow enough to buy a loaf of bread in 1945... but in 2019, they only have to pay back the same dollar amount, enough to buy only a thin slice of bread. Ditto for everything else people borrow money for.
But for people who save, it's a very different story. In 1945, you might save enough to buy a loaf of bread (or a million loaves of bread). And keep that saved money in a mattress. But in 2019 when it's time to buy some bread, your carefully saved money is able to by only one thin slice (or a million thin slices), maybe 1/20 as much bread as you though you could buy. Or 1/20 as much of anything else you thought you were saving for.
And you thought inflation was harmless? Since both the prices and the wages went up equally?
Sucker.
Last edited by Roboteer; 09-18-2019 at 12:18 AM..
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