After dropping the gold standard, the US can just print money whenever it wants more. The Keiser Report explains how this state of affairs is hurting workers’ wealth despite companies’ productivity skyrocketing.
A recent report showed more than a 130-percent gap between the growth of productivity and the hourly compensation that employees get. It turns out that the benefits workers get started to slow down rapidly once President Richard Nixon decided to go off the gold standard and there was no longer any honest way to gauge value.
“Workers aren’t needed, they are less needed than they’ve ever been because folks who print the money when they need the money, they just print more money. They don’t rely on workers to go and produce stuff, that they have to go sell and make profits,” Max Keiser told his co-host Stacy Herbert.
Producers can easily get away with this due to the lack of transparency in the US economy, where no one actually knows how high inflation is, Herbert added. She argued that, while back 1971 people knew how much their labor was worth in gold, they can now be easily deceived by the central bank.
The situation is also exacerbated by Americans’ indebtedness. Instead of thinking of their net worth or how to change it, people have to make their ends meet until the end of the month to get another check to pay off their credit card debt, mortgage, student loans etc., Max Keiser said.
For more stories on economy & finance visit RT's business section