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Totally agree. Historically, prices only go down during recessions, and only barely. The only way these gains don't stick is if our economy falls off a cliff.
by BobbyJo 5y ago
Totally agree. Historically, prices only go down during recessions, and only barely. The only way these gains don't stick is if our economy falls off a cliff.
- WalterBright 5y agoBefore 1914, when the US switched to a fiat money system, inflation netted out to zero change for the previous century. Since then, inflation has stayed pretty consistently positive. Inflation is caused by the government printing money to spend rather than raising the money via taxation. It's a politically cheap way to buy votes, which is why fiat money systems became universal among governments.
- mistrial9 5y agonot an expert here but this is not entirely accurate -- a USA Federal system of single currency was initiated around that time, but there were multiple other currencies then. Is it accurate to say that every currency in use on the continental North America was gold-backed in the year 1899? doesn't seem right.. info welcome
- WalterBright 5y agoThe US did have a single currency before 1914. But 1914 saw the creation of the Federal Reserve Bank system, which is a fiat money system. It was still backed by gold, but the events of 1929 proved that unworkable (the runs on the banks were the inevitable result), and FDR suspended that.