Fed News Friday – What does #40dollars mean to you? A LOT (if I lived in 1912)!

In a partisan face off over how long to extend a payroll tax cut that expires soon and amounts to an extra $40 per biweekly pay period for the average American worker, the White House stirred up some discussion on Twitter by tweeting out: What does #40Dollars mean to you? But the latest fiscal policy battle over a forty dollar tax cut every two weeks and whether to extend it for two months or two years (and whether to attach this or that condition to the tax cut, and whether people with Ds next to their name are more awesome than people with Rs) is just another distraction from the biggest, baddest, most insidious tax that American workers have to pay every year– the inflation tax.

Congress would much rather use up your attention span on fighting over $80 a month so that you don’t notice just how much inflation tax you pay every time you buy gas, pay your electric bill, or pick up groceries. Because if you did notice and started speaking up, then Congress might have to decide which bailouts, pet projects, non-defensive wars, and other goodies they would have to cut in order to pay for an inflation tax holiday. How much would you save if they were to cut the inflation tax? Let’s put it in the White House’s terms and see just how much you could do with an extra $40 every two weeks… in 1912 dollars, the year before the inflation tax began with the creation of the Fed…

Read the rest of my article at The Silver Underground.

Wes Messamore,
Editor in Chief, THL
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