Aug wrote --

>  JM>   While things cost more today, people have higher
>  JM>   incomes. Its a circle. Higher wages mean high prices
>  JM>   since the companies have to pay their people more, etc.
> 
> It really doesn't *have* to be that way. Except for the extra  
> bills that the mint my print, all we're doing is pushing the  
> same money around.

  At one time paper money was backed by gold.  That was replaced in the
'30s with silver, and that was replaced in the '70s by "faith".  Faith that the
money you held in your hand was worth more than the paper its printed on. 
==sigh==
  Of course using gold or silver the value of the dollar was based on the
value of gold/silver at the time.  
  Joe
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