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To: William Tell
I detest wage/price controls. They go against everything I believe about the free market. But if you're in a run-away inflation situation, how do you help those of us on fixed incomes? I'm not really sure of all the pros and cons of a W/P freeze...forgot most of that single term of Economics I took. Hey, I was one of those illiterate engineers!

The way I see it, the deficit problem is due to uncontrolled spending. A freeze might allow time to cut that spending and get the house in order, while protecting those who stand to lose the most during extreme inflation.

34 posted on 10/18/2012 8:59:26 PM PDT by Scooter100 ("Now that the fog has lifted, I still can't find my pipe". --- S. Holmes)
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To: Scooter100

Wage and price controls just produce shortages. They were disastrous in the 1970s. But if you are on a fixed income, then you should be compensated somewhat by the much higher interest rates the central bank will allow to squeeze inflation out of the system. (Assuming that lunatic Bernanke is gone by then and replaced by a Volker-type chairman.) Also, if you’re older, you probably own real estate, which is a good inflation hedge, not that that will help your cash-flow any, but at least not all your assets will be losing value.


35 posted on 10/18/2012 9:23:56 PM PDT by kevao (Is your ocean any lower than it was four years ago?)
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To: Scooter100
Scooter100 said: "The way I see it, the deficit problem is due to uncontrolled spending."

Government is not the solution. Government is the problem.

Spending more money than revenue by borrowing it from China or printing it is a gigantic form of government interference in our economy.

Just as with any addict, there will be severe withdrawal pains involved in ceasing the self-destructive behavior. This in no way would justify trying to "help" people who are going to be affected. That's what they are doing now and look where it's got us.

The primary source of wealth in our nation is PRODUCTIVITY. People do things in order to better themselves. They create value that they can trade to others in exchange for other items of value.

From the Great Depression we got an entire generation of people who saved instead of spending. My mother-in-law even saved aluminum plates. She became the way she was because of the pain of having had to work tirelessly for years just in order to stand still.

Most in the U.S. today have no idea that their "entitlements" are being supplied by borrowing from future generations. The bill will be paid in painful ways we can hardly imagine.

Having the government dictate the dollar value of goods and services while printing those same dollars in almost unlimited amounts is about the craziest idea I can imagine.

As for "those of us on fixed incomes", I suggest that you find a way to pursue a variable income. I'm one of those "not-so-illiterate" retired engineers. I paid cash for my two daughters' college educations and my wife and I saved as if there would be no social security.

Nobody should be able to claim that they did not see this coming.

36 posted on 10/19/2012 12:05:51 PM PDT by William Tell
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