Want to know one of the root sources for society’s problems?

Want to know one of the root sources for society’s problems?

This graph shows how much the Federal Reserve has devalued our hard-earned US Dollars. And every time the Fed prints more money (à la stimulus), the value drops even more.

Besides the obvious, here’s why it’s a problem:

The buying power of the dollar has dropped while wages have stayed constant. This means minimum wage workers and the middle class continue to lose its ability to function in society.

When the American Dream of owning a home with a white picket fence continues to slip through peoples’ fingers, it causes a feedback loop of disappointment and despair.

This problem is masked by the continued advancements in manufacturing and technology, keeping the prices of consumer goods low. Which manipulates the Consumer Price Index (CPI), the main measure of inflation within the economy.

Because as goods get commoditized, the average person can buy pretty amazing products, like TV’s and TV dinners, for dirt cheap. But is this the best gauge of the economy? I’m not so sure.

At the same time, hard assets like stocks and real estate are becoming dramatically more expensive. So a share of Tesla or that house in a good school district is quickly becoming unattainable for most Americans.

And so, back to the topic at hand. With the endless money printing by the Fed, these trends are only going to speed up in an exponential wealth transfer. The middle class is disappearing and the American Dream is dying. It’s happening in real time and not many are paying attention.

What are we to do?

Start businesses, buy assets, and continue to educate ourselves.

ps. Massive wealth gaps are hypothesized as a leading reason the Roman Empire fell.