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Assume The Risk

Awayslice posted this tweet a couple of weeks ago, and it has stuck in my head like a mind virus. It sums up my personal mood in a very serious way. We are in very intense economic conditions highlighted by fake inflation rates and rampant poverty. I say fake because the numbers they use to calculate CPI are a big joke meant to gaslight you. The state wants you to think evil corporations are to blame for high prices, but there is only one way for inflation to occur: the increase of the money supply. As we know, there is only one entity on Earth that controls the USD money supply, so no, it’s not greedy corporations fucking us all over. Tangent complete, my bad.

Digging into the tweet, it highlights that inflation is high, and we have to assume some risk to keep up with it. Wages are not keeping up with inflation, so people are forced to make risky moves, and in some cases, that means taking on capital gains taxes. While Awayslice’s post is about capital gains, I think the big message is more about risk in general. Inflation is so bad that it perverts all decisions. You will gamble one way or another just to keep afloat.

As the state prints more and more money, the value of money keeps dropping. This forces people to take on riskier investments just to try and preserve their wealth. Wages aren’t rising fast enough to keep up with the cost of living, so people are left with no choice but to chase higher returns to stay financially stable.

On top of that, the tax burden on capital gains makes it even worse. When people do manage to make gains, those gains are taxed, cutting into the profit that was meant to fight off inflation. It’s a frustrating situation where not only are we battling inflation, but we also have to deal with increased taxes on the investments we rely on to stay afloat. With stagnant incomes, rising taxes, and the ever-decreasing value of money, it’s getting harder and harder to maintain any kind of financial security.

YearAverage US WagesM2 Money Supply in TrillionsPurchasing Power of $1 (relative to 2014)CPI (2014 = 100)
  • Average Wage (USD): The average annual wage earned by an American worker in that year, sourced from the U.S. Bureau of Labor Statistics (BLS) and their annual wage reports.
  • M2 Money Supply (Trillions USD): The total amount of money in circulation, including cash, checking deposits, and easily convertible near money, measured in trillions of U.S. dollars, sourced from the Federal Reserve Economic Data (FRED) database maintained by the Federal Reserve Bank of St. Louis.
  • Purchasing Power of $1 (relative to 2014): The relative value of $1 in each year compared to its value in 2014, illustrating how inflation affects purchasing power over time, calculated using the Consumer Price Index (CPI) data.
  • CPI (2014 = 100): CPI with the base year of 2014 set at 100, indicating the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services, sourced from the BLS.

This table reveals several data points that are noteworthy at least:

  1. Average Wage Increase: Over the decade, the average wage went from $46,964 in 2014 to $61,848 in 2023. That’s about a 31.7% bump, which might look good on paper, but when you factor in inflation, it doesn’t feel like much.
  2. M2 Money Supply Growth: The M2 money supply almost doubled, jumping from $10.5 trillion in 2014 to $19.0 trillion in 2023. That’s a massive 81% increase, showing just how much more money is out there now.
  3. Purchasing Power Decline: The purchasing power of $1 took a hit, dropping from 1.00 in 2014 to 0.74 in 2023. So basically, $1 today buys what $0.74 bought back in 2014, meaning our money lost about 26% of its value.
  4. CPI Increase: The Consumer Price Index (CPI) climbed from 100.0 in 2014 to 121.2 in 2023. That’s a 21.2% rise, showing that the cost of goods and services has really gone up, reflecting the inflation we’re all feeling.
  5. Disparity Between Wage Growth and Inflation: Wages might have gone up by 31.7% over the decade, but the CPI increase of 21.2% means that living costs rose almost as much. So, even with higher wages, our money isn’t stretching as far as it used to.
  6. Impact of Inflation on Wealth Preservation: Inflation is forcing people into riskier investments just to keep their wealth intact. Even though wages went up, the real value of that money dropped, pushing everyone to take more risks just to stay financially stable.

This is a long way to say things are getting worse and there is no end in sight. The state is the sole reason for these issues and wants you to be a slave.

I will leave you with this…

What is slavery?