Wednesday, December 8, 2010

Random Thoughts: Inflation, Housing, and Marriage

A.

1. The more government spends, the higher the risk of inflation.
2. The higher the risk of inflation, the more likely that prices go up.
3. When prices go up, essential items such as food and housing cost more.
4. When housing costs more, it becomes more difficult for an individual to buy a home.
5. Most individuals prefer to own a home before having children.
6. Most individuals prefer to own a home soon after getting married.
7. When the government makes it more difficult for single adults to buy a home, the most responsible ones among them will delay marriage and children.

[#7 assumes that most individual adults will have either little or no parental financial support when buying a home. It may be more defensible to change "single adults" and "individuals" to "single immigrants," who are probably less likely to be able to rely on parental financial support.]

B.

1. When prices go up, various items may become unaffordable for many families.
2. When prices go up, many families will have to use credit to finance a purchase.
3. The more expensive a product, the more likely a person will rely on credit.
4. Wall Street relies on credit. Without credit, Wall Street would probably have very little influence over the average person's daily life.
5. If you are against Wall Street and big banks, you should also be against credit.
6. If you want to minimize the use of credit, you should oppose rising prices.
7. When any large entity distributes large amounts of money to any area, it tends to increase prices in that area.
8. Government is a large entity that distributes large amounts of money to various areas.
9. The less government spends, the less likely it is to cause inflation and therefore rising prices.
10. Therefore, people who are against Wall Street and big banks ought to oppose increases in government spending.

Update: see link HERE for more on this topic. 

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