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Currency Devaluation Brings Disaster to Us Middle Class

  • Date Submitted: 06/28/2012 01:30 AM
  • Flesch-Kincaid Score: 61 
  • Words: 605
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Today, many people wonder how currency devaluation destroyed the US middle class.People a lot of people think this is ridiculous. However, one reason in my opinion that is, even by the US government's own statistics, the income of the median full-time male worker begins to stagnate at exactly that point, after rising by huge amounts during the 1950s and 1960s.

The median US full-time male income was $47,715 in 2010. In 1969, it was $44,455. The 1969 numbers are of course 'adjusted for inflation,' and you know that the government's inflation adjustments are thoroughly low-balled. With slightly more honest statistics, the trend would not be flat, but instead downward over the past forty years.

Another way of looking at it is in terms of ounces of gold vibrating screen. After all, gold was the monetary basis of the United States for 182 years, from 1789 to 1971, so why shouldn't we use that as a measure of how much people are really getting paid?

Our median worker, in 1969, made $8,668 nominal. But, in those days, the Dollar was worth 1/35th of an ounce of gold. It works out to 248 ounces of gold. In 2010, the Dollar's value was, on average, about 1/1224th of an ounce of gold, and the full-time male worker was making only 39 ounces of gold. This figure exaggerates the situation somewhat, due to the rapid decline of the Dollar vs. gold in recent years, but it describes, I would say, the economic reality of the situation.

Think of it like this: what if, in year 1, the average Mexican full-time male worker was making 8,668 Pesos per year, and the Peso's value was one peso per Dollar. The Mexican worker is making the monetary equivalent of $8,448. In year 40, after four decades of 'easy money' and currency deterioration, the average Mexican worker is making 47,715 pesos, but the Peso's value has fallen to 35 pesos per Dollar. We can see that the Mexican worker is making only $1,363, and no amount of government statistical tomfoolery or 'purchasing power...


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