{"id":3979,"date":"2021-02-19T09:55:20","date_gmt":"2021-02-19T14:55:20","guid":{"rendered":"https:\/\/dahlman.online\/?p=3979"},"modified":"2021-02-19T09:55:52","modified_gmt":"2021-02-19T14:55:52","slug":"faux-inflation","status":"publish","type":"post","link":"https:\/\/dahlman.online\/index.php\/2021\/02\/19\/faux-inflation\/","title":{"rendered":"Scouting Inflation"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

Boy Scouts<\/h3>\n\n\n\n

The summer I was thirteen, I was a Boy Scout \u201cmachine\u201d.\u00a0\u00a0I was in a hurry; a hurry to get my Eagle Scout Award.\u00a0\u00a0There were five us all working in Troop 229 in Kettering, Ohio. We all had the goal of getting Eagle by Christmas \u2013 and getting the Award all at the same time.\u00a0\u00a0<\/p>\n\n\n\n

Looking back, we were all in a rush, perhaps too much so.\u00a0\u00a0When you\u2019re moving that fast through the Scouting program, you\u2019re definitely going to miss some things along the way.\u00a0\u00a0At my \u201cBoard of Review\u201d, when adults I didn\u2019t know examined my qualifications for Scouting\u2019s highest youth Award, the first words out of one of the evaluators, was, \u201cYou\u2019re too young for Eagle\u201d.\u00a0\u00a0I must have been a budding politician then, as I still managed to convince him, and the others, into voting for my application.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

Moving through the ranks of Scouting \u2013 Tenderfoot, Second Class, First Class, Star, Life and Eagle, is mostly a matter of passing qualifications.\u00a0\u00a0For the last three those qualifications come in the form of Merit Badges. At the time it took twenty-one to earn the Eagle Award.\u00a0\u00a0They tested everything from Camping, Canoeing and Swimming, to First Aid and Emergency Preparedness, to Citizenship in the Community, Nation and World .<\/p>\n\n\n\n

Service Project<\/h3>\n\n\n\n

But Eagle was special \u2013 and it required a special service project, something of value to the community.\u00a0\u00a0And the service project wasn\u2019t just about doing work.\u00a0\u00a0The real test of the project was in the organization.\u00a0\u00a0Finding a good cause, getting help, materials, and planning out the project were just as important as the completion itself.\u00a0\u00a0My project wasn\u2019t some of the incredible constructions I hear about today. Nor was it some highly developed social media effort (social media consisted of phone calls back in 1970).\u00a0\u00a0It was fairly simple:\u00a0\u00a0there was a group home for adults with mental handicaps, and it needed to be cleaned up and painted.\u00a0\u00a0<\/p>\n\n\n\n

So I got my four friends on the \u201cEagle Trail\u201d, organized all of the equipment and paint, and we spent a weekend making the home look a lot more \u201chomey\u201d.\u00a0\u00a0It was an experience:\u00a0\u00a0ladders and wasp nests, chipping and second coats \u2013 but we got it done.\u00a0\u00a0And at the end of the first day I took my buddies out to dinner at the \u201cnew\u201d hamburger place, McDonalds.\u00a0\u00a0<\/p>\n\n\n\n

Big Mac Meals<\/h3>\n\n\n\n

All five of us were starving.  It was Big Mac\u2019s and Fries, chocolate shakes and probably some extras as well.  I was a little surprised at the price, more than I expected, and I think I had to hit up my Dad for a couple of extra bucks.  The total bill was FIVE dollars.<\/p>\n\n\n\n

Five dollars \u2013 seemed like a lot of money in those days.\u00a0\u00a0Five dollars could fill five teenagers\u2019 stomachs after a hard, hot day of working on the Home.\u00a0\u00a0Just five dollars \u2013 in 1970 that would buy twenty gallons of gasoline, more than four gallons of milk, and twenty POUNDS of bread.\u00a0\u00a0<\/p>\n\n\n\n

What will FIVE dollars get you at McDonalds today?  A \u201cnumber one\u201d value meal:  Big Mac, Fries, and a drink, costs $7.60.  That\u2019s for one.  So to feed those five \u201cstarving\u201d teens today, it\u2019s closer to $40.00 (Menu and Price<\/a>).<\/p>\n\n\n\n

Value of a Dollar<\/h3>\n\n\n\n

What\u2019s changed?  So probably not the Big Mac, or the Fries, or the Cokes from the fountain (though the fountain may be \u201celectronic\u201d and require advanced computer training to pour).  What changed is the value of the money used to pay for those items, the \u201cvalue\u201d of the dollar.<\/p>\n\n\n\n

And the value of a dollar is based on the \u201csupply\u201d of dollars versus the \u201cdemand\u201d.  Not to be too simplistic, but the \u201cdemand\u201d for money is pretty consistent \u2013 everybody wants it, everybody needs it, and everybody will spend it (in one form or another). <\/p>\n\n\n\n

 So the \u201cdemand\u201d side isn\u2019t such a big deal \u2013 even in the pandemic Americans have managed to spend money.  Look at the success of Amazon, or try to buy furniture, or find someone to do home remodeling.  We have been stuck at home, and if we have money, then our homes are often looking a lot better.<\/p>\n\n\n\n

National Debt and Inflation<\/h3>\n\n\n\n

The United States government often spends more money than it raises in taxes, fees, and other income.  That \u201cdeficit\u201d spending is \u201cfunded\u201d by the government borrowing the money.  That \u201cborrowing\u201d includes selling bonds, simple promises to \u201cpay Tuesday for the money today\u201d.  Back in 1970, the US Government owed $370 billion, mostly driven by Cold and Vietnam War spending.  <\/p>\n\n\n\n

At the end of the Trump Administration, the US Government owes about $27 trillion.  That\u2019s seventy-three times higher than when I was thirteen.  But the relative value of the \u201cdollar\u201d in terms of Big Macs, is only one-seventh (it takes seven times more dollars to buy it).  And while the debt has almost doubled in the past decade, the Big Mac Value meal increased by less than a dollar.  So we can conclude \u2013 at least on the \u201cBig Mac\u201d scale \u2013 that while rising costs are linked to the National debt \u2013 there isn\u2019t a dollar-to-dollar relationship.<\/p>\n\n\n\n

Biden\u2019s Proposals<\/h3>\n\n\n\n

It the US Government decided to \u201cpay-off\u201d ALL student debt, it would cost $1.7 trillion.  Assuming that it\u2019s not paid for by additional taxes, it would increase the National Debt but six percent.  By the way, that\u2019s almost exactly how much the Trump Administration \u201cgave back\u201d in their big tax cut in 2017.  Joe Biden\u2019s COVID relief package costs $1.9 trillion, just a bit over a seven percent debt increase.  <\/p>\n\n\n\n

So when we hear Republicans and some moderate Democrats all of a sudden worried about the impact of spending on the National Debt and inflation, remember that they didn\u2019t seem too worried about that in the Trump Administration, when the National Debt went up 26%, from $20 trillion to $26 trillion (The Balance<\/a>).  Hard to imagine that it\u2019s NOW, that a couple of more trillion will make \u201call the difference\u201d and drive us to dramatic inflation.<\/p>\n\n\n\n

But their anguished worries make good sounds bites \u2013 especially when the programs are benefitting the lower income Americans instead of the top one percent windfall of the Trump tax cut.<\/p>\n\n\n\n

Eagle Ceremony<\/h3>\n\n\n\n

In November of 1970, five Boy Scouts were awarded the Eagle Rank at Southdale Elementary School in Kettering.\u00a0\u00a0Dad managed WLW-D in Dayton, so we got television news coverage and everything (there\u2019s even an old reel of 16mm film around).\u00a0\u00a0And just because five Scouts earned the rank at once, it didn\u2019t \u201cinflate\u201d the Eagle Ranks, nor did it \u201cdevalue\u201d the influence of the award.\u00a0\u00a0It\u2019s been on my resume every since.\u00a0\u00a0And the tarnished Eagle medal still is in the top drawer of my dresser.<\/p>\n","protected":false},"excerpt":{"rendered":"

Boy Scouts The summer I was thirteen, I was a Boy Scout \u201cmachine\u201d.\u00a0\u00a0I was in a hurry; a hurry to get my Eagle Scout Award.\u00a0\u00a0There were five us all working in Troop 229 in Kettering, Ohio. We all had the goal of getting Eagle by Christmas \u2013 and getting the Award all at the same … Continue reading “Scouting Inflation”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-3979","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\nScouting Inflation : Our America - Essays on Politics and American Life<\/title>\n<meta name=\"description\" content=\"Pay student debts? 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After forty years of teaching and coaching track and cross country, I've finally retired!!! 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