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for a gallon of gas, and 3,000 hours for a house.

The relative prices between gas and houses has not changed drastically. What has changed is the value of money. Money, like any commodity, goes down in value as its supply goes up. The way the money supply goes up is through spending for which there is no source of revenue. For example, the economic stimulus plan is estimated at about $170 billion. The money spent stimulating the economy did not exist until the government sent checks creating it.

We know this because there is a huge deficit between revenues the federal government will realize and what it spends. The budget was already in deficit when these checks were printed, so, aside from the small percentage of revenue the government will derive as people spend the money, the majority of it will simply add to both the deficit and the money supply. As a result, each check reduces the value of a dollar.

THE JOKE WE SHOULD NOT LAUGH AT

Certainly there are people whose pay substantially exceeds minimum wage. Most of these people have skills through education and experience that justify the greater wages. However, it is becoming more common that private employers are not able to match the wages public sector employers pay its employees. This is an unfortunate dynamic that ought to be of greater concern to consumers.

Not only does the growth in public sector jobs denote that the economy is shifting from capitalism to socialism, those who are not able to get those jobs are left in the private market while it is shrinking due to outsourcing of labor and corporate mergers.

Gravity is a universal law that is also elemental in common thought. As the number of people who are on the outside grows, so do the masses of thought of hopelessness and disdain for those holding public sector jobs. As both masses with conflicting ideals grow, so, too, grows conflict between the masses. This has had unfortunate results throughout history.

The problem, however, is that the government can do little about it. Only consumers and voters can make the difference. Since the solution is for consumers to pay more, and for voters to stop electing those who promise entitlements, it is highly unlikely for the problem to resolve itself. It is more likely that price increases will exceed wage increases, while minimum wage will more frequently become the going wage.

Learn more about this author, Tom Koecke.
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