Comments on: $600 Cars & 12¢ Hamburgers http://www.savingadvice.com/blog/2006/10/27/10917_600-cars-12%c2%a2-hamburgers.html Bridging the gap between saving money and investing Fri, 05 Dec 2008 11:43:35 +0000 http://wordpress.org/?v=2.6.1 By: Aniela http://www.savingadvice.com/blog/2006/10/27/10917_600-cars-12%c2%a2-hamburgers.html#comment-33146 Aniela Thu, 05 Apr 2007 16:52:24 +0000 http://www.pfadvice.com/?p=917#comment-33146 Wouldn't it be nice tho if a hamburger was still .12 cents ? :) Wouldn’t it be nice tho if a hamburger was still .12 cents ? :)

]]> By: livingplanet http://www.savingadvice.com/blog/2006/10/27/10917_600-cars-12%c2%a2-hamburgers.html#comment-8027 livingplanet Sat, 28 Oct 2006 22:29:56 +0000 http://www.pfadvice.com/?p=917#comment-8027 i see you read mises (and probably hayek?). good, just as long as you note that there is an eternal power struggle between gov't, big business, and labor. yet, the economy is a three-legged stool composed of all three. what's my point? i believe in a radical middle or the third way... i see you read mises (and probably hayek?). good, just as long as you note that there is an eternal power struggle between gov’t, big business, and labor. yet, the economy is a three-legged stool composed of all three. what’s my point? i believe in a radical middle or the third way…

]]> By: LJ Cox http://www.savingadvice.com/blog/2006/10/27/10917_600-cars-12%c2%a2-hamburgers.html#comment-8001 LJ Cox Fri, 27 Oct 2006 16:34:57 +0000 http://www.pfadvice.com/?p=917#comment-8001 Of course, your 2005 wage would also be proportionately smaller than in 1959. Of course, your 2005 wage would also be proportionately smaller than in 1959.

]]> By: pfadvice http://www.savingadvice.com/blog/2006/10/27/10917_600-cars-12%c2%a2-hamburgers.html#comment-8000 pfadvice Fri, 27 Oct 2006 16:27:25 +0000 http://www.pfadvice.com/?p=917#comment-8000 heh - didn't word that very well and you are absolutely correct. That's what I get for writing posts at 2:00 in the morning. heh - didn’t word that very well and you are absolutely correct. That’s what I get for writing posts at 2:00 in the morning.

]]> By: bluprint http://www.savingadvice.com/blog/2006/10/27/10917_600-cars-12%c2%a2-hamburgers.html#comment-7992 bluprint Fri, 27 Oct 2006 13:32:33 +0000 http://www.pfadvice.com/?p=917#comment-7992 You said: "What this does show is that it’s not only inflation that has caused the prices of the goods we buy (our everyday personal finances), but also how the government runs and increases the money supply. " I just want to point out, that when government increases the supply of money, that CAUSES inflation. In fact, the article even says: "the money supply was fixed, prices would tend to fall", indicating that in general (adjusting for technological changes or improvements to products) all price inflation is specifically caused by monetary policy. The effect of inflation (the reason we should all care) is that it causes savings/cash to become worth less, which deteriorates incentive to save. We literally have a government that regularly takes action (via monetary policy) to discourage savings. Nice, huh? You said: “What this does show is that it’s not only inflation that has caused the prices of the goods we buy (our everyday personal finances), but also how the government runs and increases the money supply. ”

I just want to point out, that when government increases the supply of money, that CAUSES inflation. In fact, the article even says: “the money supply was fixed, prices would tend to fall”, indicating that in general (adjusting for technological changes or improvements to products) all price inflation is specifically caused by monetary policy.

The effect of inflation (the reason we should all care) is that it causes savings/cash to become worth less, which deteriorates incentive to save. We literally have a government that regularly takes action (via monetary policy) to discourage savings. Nice, huh?

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