Our Threatened Freedom
What Has Happened To Our Money? (04:23)
R.J. Rushdoony: 00:01 What has happened to our money? This is R.J. Rushdooney with a report on our threatened freedom.
R.J. Rushdoony: 00:07 Recently, Richard V. [Burgers 00:00:09], an outstanding commodity broker, analyzed very ably what has happened to the dollar. By comparing the dollar of the 1930s with the $35.00 an ounce gold standard, and then the 1981 paper dollar, and a gold price just below $500 an ounce, some interesting facts come to light. The 1981 dollar is worth only 1/13, or 7.7% of the 1930’s dollar. This is a depreciation of 92.3% in the value of the dollar. If we adjust the 1981 commodity prices in terms of this depreciation of the 1981 dollar to the level of the 1930s in gold value, we get the following prices according to Burgers.
R.J. Rushdoony: 01:06 Today’s $4.40 wheat deflates to 34 cents. Copper at 86 cents deflates to 6.6% of cents. 20 cents sugar to 1 1/2 cents. Cotton from 87 cents to 6 cents in terms of a gold pegged value. Consider this too, gasoline instead of $1.35 is 10.4 cents a gallon. A $4.00 movie ticket would be 31 cents. Gum at 25 cents would be less than 2 cents. A $1.25 loaf of quality bread would be 9 cents in terms of a $35.00 in gold value. What can we conclude from all this?
R.J. Rushdoony: 01:54 Obviously, the dollar has inflation. It has lost 92.3% of its value in about 50 years. The real cost of goods has not gone up. Better methods of production have actually cut the real cost of one item after another. If this had not been the case, we would have an even more severe inflation. What has happened is that the paper dollar had depreciated, and it buys less and less every day. Although we have more paper dollars, we are in trouble because taxes take too many of our dollars. We feel the pinch with the direct taxes, income, property, inheritance, sales, and other taxes. This however, is only part of the story.
R.J. Rushdoony: 02:46 Everything we buy has literally hundreds of taxes on it. From the time a cow is sold and its meat reaches the market and your shopping bag, or its hide goes into your shoes, or some other purchase, hundreds of taxes hit every stage of the operation, and a very large proportion of the cost goes for hidden taxes. Taxes are like icebergs. Only the tip of a vast giant ever shows. Most of the iceberg, like most of our taxes, lies below the surface. However, what is happening is visible.
R.J. Rushdoony: 03:29 Federally created inflation is eating up our national wealth. In the 1930s, we had a depression, but American automobiles, goods, and products dominated the world market. Inflation and its erosion of our money has done what The Depression could not do. We are no longer the producing power in the world. In one area after another, we are falling behind. Money has been called the life blood of an economy. A disease of the blood can mean the death of the body politic. Bad money is destroying us, and it is destroying our freedom. Before it is too late, we must stop the erosion of the dollar and of freedom.
R.J. Rushdoony: 04:18 This has been R.J. Rushdoony with a report on our threatened freedom.
Learn more about R.J. Rushdoony by visiting: https://chalcedon.edu/founder