http://www.finetunedfinances.com/2009/02/what-does-a-175-trillion-dollar-deficit-mean-for-you-and-me/ Make Your Wallet Run Like New Again Mon, 15 Mar 2010 19:55:14 +0000 http://wordpress.org/?v=2.9 hourly 1 http://www.finetunedfinances.com/2009/02/what-does-a-175-trillion-dollar-deficit-mean-for-you-and-me/comment-page-1/#comment-1370 BizzyBlog Sat, 12 Dec 2009 05:01:59 +0000 http://www.finetunedfinances.com/?p=218#comment-1370 [...] Image found at Fine-Tuned Finances.com. [...] [...] Image found at Fine-Tuned Finances.com. [...]

]]> http://www.finetunedfinances.com/2009/02/what-does-a-175-trillion-dollar-deficit-mean-for-you-and-me/comment-page-1/#comment-98 Anonymous Coward Sat, 28 Feb 2009 23:08:06 +0000 http://www.finetunedfinances.com/?p=218#comment-98 Saying that inflation does not affect the consumer is retarded. Lets say inflation for 2008 is 3.85%, and the economy is tanking (like it is now) resulting in many people not getting raises. All those people effectively made 3.85% less money than they did the year before. To compensate, businesses will be adjusting prices to reflect the devalued currency to ensure that they don't have a budget shortfall, since not everyone can perpetually operate in the red. So your average citizen going to buy staple items will find that their budget covers less and less each year. This has an even more profound effect on retirees counting on a long term fixed income. Meanwhile, arbitrarily printing money to give 'stimulus' packages will only serve to increase the rate of inflation and have a greater impact on the average consumer. Moreover, if we were not operating at a huge deficit and paying all that interest, $385 billion dollars would go a long way to provide government services and infrastructure that average citizens would find impacts them positively. Even if that interest was distributed in the form of a check or tax credit to every citizen, I think the average consumer would find that an extra $1258/year would be a 'noticeable change' Saying that inflation does not affect the consumer is retarded. Lets say inflation for 2008 is 3.85%, and the economy is tanking (like it is now) resulting in many people not getting raises. All those people effectively made 3.85% less money than they did the year before. To compensate, businesses will be adjusting prices to reflect the devalued currency to ensure that they don’t have a budget shortfall, since not everyone can perpetually operate in the red. So your average citizen going to buy staple items will find that their budget covers less and less each year. This has an even more profound effect on retirees counting on a long term fixed income. Meanwhile, arbitrarily printing money to give ’stimulus’ packages will only serve to increase the rate of inflation and have a greater impact on the average consumer. Moreover, if we were not operating at a huge deficit and paying all that interest, $385 billion dollars would go a long way to provide government services and infrastructure that average citizens would find impacts them positively. Even if that interest was distributed in the form of a check or tax credit to every citizen, I think the average consumer would find that an extra $1258/year would be a ‘noticeable change’

]]>