Reply #5: I think I see what has gone wrong

[Tigermoose]

The inflationary system is not necessarily a bad system. This system ensures that the wealthy invest their capital in the idea that this will generate more production within the economy, which in theory would mean more jobs for the non-capitalists. But with globalization, we are seeing a disconnect in that system for our country's working class. Instead of investing all that capital in production here in this country, corporations are using those investments to produce in other countries. So what we will continue to have in store for us is a growing divide between the rich and the poor in this country, while the poor in other countries gain wealth while they are the centers of production. To offset this disconnect, we must do one of the following:

1. Redistribute the wealth in this country via taxation of the rich into entitlement programs
2. Increase interest rates which would reduce the rate of inflation and allow working people's money to retain its value over time
3. Revolutionary changes in our federal reserve capital system (not likely unless a major meltdown occurs)
4. Place tariffs on imports

The Republican answer of trickle-down economics might have worked in the past, but with globalization it does not seem that reinvestment in U. S. production is keeping up with the erosion of the dollar through inflation. Granted, any of these assumptions or statements might be proven wrong through statistical data.

So it seems that option #1 seems like the most feasible of the options at the present time. However, I do think there is a justified concern for creating a class of citizenry that is dependent upon the government rather than themselves for their livelihoods. This seems to be something akin to the Roman empire distributing grain and games to the nonworking populace of Rome in order to keep civic order. I think it would be much better to create a system that is fair and just.