Re: OT: Inflation in the US

On Fri, 18 Jan 2008 19:49:47 -0800, John Smith
<assemblywizard@xxxxxxxxx> wrote:

MooseFET wrote:

...
Stagflation started under Nixon. Remember the wage and price controls
and all the distortions it caused in the economy. This is part of
what messed up the US car industry among others.

I was born in 1952. Price controls were in effect which had been in
place since the great depression, I guess. I believe it was sometime in
the early 70's they did away with them. About 80% of the population
owned their own homes, most of the rest were purchasing them from the
banks, had 3 to 4 weeks vacation time, union pay scale/benefits whether
the company was union or not, etc. I had heard about homeless people
who were willing to work, just had never seen one.

Now, about 20% of the population own their own homes (the rest are
either purchasing them from the gov't/bank or renting.) I see homeless
people everywhere begging for work/education and loads of the "middle
class" struggling.

A sign that says "will work for food" doesn't mean that they are
serious. Most panhandlers know exactly what works to maximize revenue.
In front of our building, the panhandlers work in organized 2-hour
shifts. The signs are always crudely lettered on brown cardboard,
because that's what works best. The panhandlers are almost universally
youngish white males; in a town that's 30% Chinese, I've never seen a
Chinese beggar.

The large number of unemployed panhandlers is a symptom of widespread
prosperity. Think about it.



To tell me we are better off is a very poor joke, been there, seen it.
However, they have convinced the youngsters they are better off and
things are only getting better.

Sure looks to me like we are heading towards another depression and
price controls ... we shall see what the future brings.

I doubt that we'll have a serious depression, and price controls only
make things worse. Besides, most things, except housing, are dirt
cheap in the USA.

John

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