“…today one hour of work at the end of 2013 produces 169.8% of the output that one hour of work produced in 1980…
“It does not matter how many dollars you have or are paid. What matters is how much time you must spend working to earn a gallon of gasoline, rent, electricity or water for a month, food to feed your family and so on. That is, what matters is how much what you have and earn buys in material goods and services.
“Your purchasing power isn’t stolen through “inflation” per-se. If you are paid $20 tomorrow for an hour of work instead of $10 but the price of everything doubles you can say “inflation” was 100% (as expressed in prices) but it doesn’t matter because you get paid twice as many dollars. (Of course it matters a great deal if you saved those dollars from previous work, which is why inflation is bad and deflation is good — but we’re talking about the “Average Joe” that saves nothing.)
“In short only purchasing power matters as measured by a monetary invariant — such as an hour of work or a BTU of energy…
“The “wedge issues” that are often raised, whether they be “gay marriage”, “pot smoking”, “gun rights” or whatever else are a damned sideshow. Do you really care about “gay marriage” if you are so damned poor you’re living under a freeway overpass in a refrigerator box, gay or straight? Do you really care about gun rights if you can’t afford a gun no matter how little they cost because your income is insufficient to pay for food, water and a place to take a crap?“
Not only have the productivity of the average worker gone up since 1980, it has gone up 10% since 2007. So much for the “Great Recession”. Where did that 10% go? Not into the pockets of Big Business, although I am sure crony-friends of Clinton, Bush, and Obama have received their fair share. No, into the bottomless pit of government corrupt spending.
People complain about the un-sustainability of government spending, I do agree it is un-sustainable. However, the reason why we are limping along when we should be in heap of rubble is because the government has used deficit spending, debt, and monetary policy to rob the people. How long will that last? Until it doesn’t.
read more: http://market-ticker.org/post=229165