Sunday, March 2, 2008

Do the Math

When I started as a carpenter in 1973, union scale in Las Vegas was $7.84/hr. You could buy a starter home for $20,000 and gas was $0.25/gallon. Back then I was pieceworking, being paid by the foot for working on tract homes. I though union scale was a joke. How could anyone live on that? I was averaging $15/hr.
Fast forward to 2008. Today union scale for a carpenter in Vegas is a little over $30/hr. Four times the 1973 scale. A new starter home is $250,000, about twelve-and-a-half times a 1973 home. And just yesterday I paid $3.05/gallon, a little over twelve times a 1973 gallon. So to just keep pace with inflation, carpenter scale would have to be at least $90/hr. Back in the 70's, every paycheck of mine was, truly, a fortune.

It used to be common knowledge(however wrong it was) that war was good for the economy. "The tonic of a serious moral adventure". It should be fairly obvious, by now, that war trashes an economy. There are a lot of people that still haven't figured it out yet.
America doesn't seem to make anything anymore, so logically, jobs will be harder to come by. And when China figures out that the dollars we trade them are worthless, this country will have to get back to work fast or starve.
The Federal Reserve is a private bank whose main job is counterfeiting. Their counterfeiting operation allows the U.S. Government to pretend they can afford wars and welfare. Direct taxation, which would be at least honest, would quickly acquaint taxpayers with the true cost of government boondoggles. Instead, we talk about what a shame it is to pass the cost of "borrowing" along to our children.

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