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<p>[QUOTE="SilverSurfer, post: 832719, member: 21603"]Interesting conversation so far. Lets consider the future now. At 3% inflation, prices should double every 20 years. Some prices double faster. If you are 40 years old now, and plan on living to about 80, consider what a hamburger will cost you. Consider what a car will cost. Consider what renting an apartment will cost you. Now, consider what you make as a wage today, and consider if it will be able to support the prices you've generated for that hamburger, car, rent. If you had 1 million dollars today, without investing it to get a return (or putting it in a bank which basically gives you .025% return a year), you wouldn't be able to retire....even though you are a millionaire. Why? Because 40 years from now, a million dollars won't be much if things keep on the way they are. Lastly, when more money is created, prices lag the introduction of this new money (the time scale on the lag is debatable). But a lag does exist. So, if you are the first people to get your hands on this money, you can use more money to buy at current prices. But, if you are the last people to get this money, prices have already increased.....and the extra you get usually isn't the same percentage as those that got it first, as it now has to go around to more people. This is the main reason why the rich get richer, and the poor get poor. The trickle down effect it responsible for this.[/QUOTE]</p><p><br /></p>
[QUOTE="SilverSurfer, post: 832719, member: 21603"]Interesting conversation so far. Lets consider the future now. At 3% inflation, prices should double every 20 years. Some prices double faster. If you are 40 years old now, and plan on living to about 80, consider what a hamburger will cost you. Consider what a car will cost. Consider what renting an apartment will cost you. Now, consider what you make as a wage today, and consider if it will be able to support the prices you've generated for that hamburger, car, rent. If you had 1 million dollars today, without investing it to get a return (or putting it in a bank which basically gives you .025% return a year), you wouldn't be able to retire....even though you are a millionaire. Why? Because 40 years from now, a million dollars won't be much if things keep on the way they are. Lastly, when more money is created, prices lag the introduction of this new money (the time scale on the lag is debatable). But a lag does exist. So, if you are the first people to get your hands on this money, you can use more money to buy at current prices. But, if you are the last people to get this money, prices have already increased.....and the extra you get usually isn't the same percentage as those that got it first, as it now has to go around to more people. This is the main reason why the rich get richer, and the poor get poor. The trickle down effect it responsible for this.[/QUOTE]
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