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View Full Version : This is how bad our monetary policy has gotten.




Flirtnwitdisaster
02-02-2012, 04:34 PM
I was thinking about what Ron Paul had said during one of the first debates, when he said "you could buy a gallon of gas for one silver dime". So I compared the wages and costs of two years, 1970 and 2010, and came up with these depressing facts. In 1970 the minimum wage was $1.60 per hour and the median wage was $4.75 per hour, the cost of one gallon of gasoline was $0.36, one ounce of gold cost $35.96, and one ounce of silver cost $1.76.
In 2010 the minimum wage was $7.25 per hour and the median wage was $19.25 per hour, the cost of one gallon of gasoline was $3.30, one ounce of gold cost $1226.66, and one ounce of silver cost $29.36. Now lets look at the purchasing power of the wages of 1970 vs. 2010. First minimum wages, in 1970 you could buy 4.44 gallons of gas for one hour of work, while in 2010 you could only buy 2.2 gallons. In 1970 you would have to work 22.48 hours to buy one ounce of gold and 1.10 hours to buy one ounce of silver, in 2010 you would have to work 169.19 hours to buy one ounce of gold and 4.05 hours to buy one ounce of silver. Now we go to the median wage, in 1970 you could buy 13.19 gallons of gas for one hour of work, while in 2010 you could only buy 5.83 gallons. In 1970 you would have to work 7.57 hours to buy one ounce of gold and 0.37 hours to buy one ounce of silver, in 2010 you would have to work 63.72 hours to buy one ounce of gold and 1.53 hours to buy one ounce of silver. When Ron Paul talks about the hidden tax, I don't think a lot of people understand what he's saying. He needs to show the people the real numbers, like the one's above.