Even without growth in the labor force, it would be best to inject new money. Because new industries and new projects need to be performed every day. And those projects can not be financed without new money. Whether its the state running budget deficits, or banks encouraging private market expansion through fractional reserve lending, new money needs to come from somewhere. We can't increase taxes, or wage cuts in one sector to come up with enough capital to fund an entirely new project. Doing so would create dissatisfaction amongst the group being axed.
While the expansion in the money supply would increase inflation. It would not increase poverty. In fact, the injection of new money would produce new wealth. Fiat money is the synthetic replacement for gold and other precious commodities. Its introduction into the economy stimulates economic growth the same way a mechanical rabbit stimulates a group of greyhounds to run around the track. And its through human labor is wealth created. And anything that motivates the unemployed to contribute more for society helps generate new wealth.
How much did a box of Kellogg's Corn Flakes cost?
| [June 29, 1907] "large size," 10 cents [1908] no size, 10 cents [1909] no size, 10 cents [1910] no size, 9 cents [1911] no size, 10 cents [1912] no size, 9 cents [1913] no size, 10 cents [1914] no size, 10 cents [1915] no size, 8 cents [1916] no size, 8 cents [1917] no size, 8 cents [1918] no size, 8 cents [1919] no size, 12 cents [1920] no size, 11 cents [1922] "large size," 12.5 cents [1923] no size, 9 cents [1924] no size, 8 cents [1925] no size, 9 cents [1926] no size, 10 cents [1927] no size, 10 cents [1928] no size, 8 cents [1929] no size, 7 cents [1930] 7.6 oz, 7.5 cents [1931] no size, 9 cents [1932] 8 oz, 25 cents/four pkgs [1933] no size, 20 cents/three pkgs [1934] 8 oz, 8 cents [1935] 8 oz, 8 cents [1936] 8 oz, 20 cents/three pkgs [1937] no size, 7 cents [1938] 8 oz, 13 cents/two pkgs [1939] 8 oz, 13 cents/two pkgs [1940] 8 oz, 11 cents/two pkgs [1941] no size, 9 cents [1942] 11 oz, 8 cents [1943] 11 oz, 8 cents [1944] 6 oz, 5 cents [1945] 11 oz, 8 cents (also: 6 oz, 5 cents & 18 oz, 12 cents) [1946] 6 oz, 5 cents [1947] 13 oz, 17 cents [1948] 8 oz, 12 cents [1949] 13 oz, 19 cents [1950] 8 oz, 16 cents [1951] 8 oz, 13 cents [1952] 8 oz, 16 cents [1953] 8 oz, 15 cents [1954] 8 oz, 25 cents | [1955] 12 oz, 19 cents [1956] 8 oz, 29 cents/two pkgs [1957] 8 oz, 17 cents [1958] 8 oz, 18 cents [1959] 12 oz, 22 cents [1960] 18 oz, 27 cents [1961] 12 oz, 23 cents [1962] 18 oz, 27 cents [1963] 12 oz, 23 cents [1964] 12 oz, 29 cents [1965] 12 oz, 25 cents [1966] 12 oz, 25 cents [1967] 12 oz, 29 cents [1968] 18 oz, 39 cents [1969] 12 oz, 29 cents [1970] 18 oz, 38 cents [1971] 8 oz, 21 cents [1972] 18 oz, 37 cents [1973] 12 oz, 25 cents [1974] 18 oz, 43 cents [1975] 12 oz, 45 cents [1976] 18 oz, 69 cents [1977] 12 oz, 50 cents [1978] 24 oz, $1.15 [1979] 12 oz, 59 cents [1980] 19 oz, 99 cents [1981] 18 oz, $1.12 [1982] 18 oz, $1.25 [1983] 18 oz, 99 cents [1984] 12 oz, 89 cents [1985] 18 oz, $1.09 [1986] 18 oz, $1.39 [1987] 24 oz, $1.99 [1988] 18 oz, $1.49 [1989] 18 oz, $1.69 [1990] 18 oz, $1.99 [1991] 18 oz, $2.19 [1992] 18 oz, $1.99 [1993] 18 oz, $1.29 [1994] 24 oz, $2.19 [1995-1996] no prices found yet [1997] 18oz, $2.59 [1998] 18 oz, $2.29 [1999] no prices found yet [2000] 18 oz, $2.99 [2001-2003] no prices found yet [2004] 12 oz, $2.99 [2005-2007] no prices found yet [May 10, 2008] 12 oz, $2.99 |
Inflation is very real. A loaf of bread was only 9 cents in 1929. And a box of corn flakes was only 10 cents in 1908 versus 3 dollars today.
But people are not any poorer as a result of inflation. In fact, world grain production continues to grow exponentially because of inflation. People eat better today than they did in 1909.
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