I remember going to the store as a kid and taking in $1 and walking out with 3 bags of cheetos and 2 bags of doritos. Ah, there was no decade like the 90's! People had a lot more money, the cost of living was much lower, and it was much easier for Americans to get ahead. I remember going on family vacations twice a year and never hearing about my parents complaining that there wasn't enough money.
Boy, have times changed in less than 20 years! I am the adult now with a family of my own, and when I take my boys to the store, that $1 that used to by 5 bags of chips can't even buy 2! Everyone that I talk to that was of working age in the 90's and early 2000's say that things were much better then than now, even though people supposedly make more money. I look at the rise of the cost of living and I wonder if it will keep getting worse by the time my boys are old enough to have a family. A lot of people keep saying we are close to another recession. That's pretty scary because the last recession almost completely shut down the financial system, and we have a lot more total debt than before!
If people still feel the pinch nearly 10 years after the worst recession since the Great Depression, then maybe there is something wrong with our financial system that our leaders aren't telling us. I for one can tell that something isn't right simply by going to the grocery store. But that isn't the only red flag I see. Healthcare costs keeps going up, so does housing and car prices. But that's not everything.
The biggest red flag may be the fact that our dollars are no longer backed by gold. They are backed by our labor. But if we have another recession that is worse than the last one because our debt has doubled, could that mean that something could happen with our dollar because not enough people would be working to support it?
Gold and silver have always been used as money, and they are pretty cheap compared to everything else that has increased over time. I think they will provide some protection as we continue to work through these uncertain times. I'll talk a little more about why over the next few articles.
In the meantime, comment below if you can remember things that were a lot cheaper when you were younger and talk about why you think they are more expensive now.
See you next time!