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  • October19th

    Music Monday #2!

    Posted in: Music

    I know I missed last Monday…and possibly the Monday before that too! Sorry! I’ve been so bogged down recently with school, the only thing I have found too much time for is eating the worst food possible :~/. but that’s about to change! I’ll be doing a blog post on that soon too!!

    Here is your Music Monday #2 song of choice :)

    Greatchadayis!

    – Ross

  • October5th

    Ready for an economics lesson? Ready for a rude awakening? Okay, hurr it goes:

    The government is stealing your money…

    just thought I’d let you know!

    Inflation is what economists endearingly refer to as an “indirect tax.” Meaning that the government is taxing the money that you already have, but they’re not exactly telling you…which is why it’s twice as scary. But first, I’ll explain to you what exactly inflation is, then we’ll discuss what causes it, and finally we’ll discuss some rare cases of “Hyper-Inflation”

    So we’ve all heard of inflation, and we all get a more or less bad feeling in our gut every time we hear it. Inflation is the reason that bread now costs more than $0.05 and why a gallon of milk is more than 10x the price of what it used to be. Now, granted, there are other factors that could lead to things becoming more expensive over time, but the most relevant cause is simply inflation. Inflation is calculated using the CPI (Consumer Price Index) which is calculated using a basket of goods that the average consumer buys. For example, the basket might include some soup, a gallon of milk, loaf of bread, bottle of soap, some tomatoes, some cereal, etc. They determine the cost of this exact basket every year, so they take the current year’s, compare it to last year’s, find the difference, divide it by last years cost and you’ve got your inflation rate! The reason they calculate it this way is because by using a normal ‘basket of goods’ you can rest assured that fighter planes, air tankers, Boeing jets, etc. aren’t included…because you and I don’t buy those things – so we don’t care. There are other ways to calculate inflation, but this is the most common; there are also numerous issues with calculating the inflation rate this way, but again, this is the most common way, so that’s what we’re going to use as an example.

    So basically inflation is this: It is the decrease in the “value”/”Purchasing Power” of the dollar in your pocket. If the inflation rate is 3%, you’ll need $1.03 to buy something that only cost just $1 last year. This doesn’t seem like that big of a deal, except that it keeps compounding year after year.

    The cause of this inflation is primarily the government printing money (other factors exist), but the simplest example I can give you is this:

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  • October5th

    Since I waited SO long (1 week, to be exact) since my last post, I can just start with another Music Monday! haha.