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Pittsburg, Kansas | I agree with the thought that now days people expect raises and there is definitely dissatisfaction if they do not get them. We have had probably two generations now that have had most of their lives lived during an environment where inflation is expected in both wages and assets.
In 1870 the farm we are living on was bought for $20 per acre or at the time an ounce of gold. A few years back it was probably worth 1500 per acre when gold was worth 2000. Now gold is down below 1200 and the ground would probably sell for 2000 or more. So for 145 years the ground in relation to other assets that tend to hold their value has not really changed much. The USD has just depreciated that much. We get taxed with inflation while we are living and get to pay capital gains tax on the "gain" which is nothing but another inflation tax. The ground really has not changed in value.
John | |
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Deflation
