The simple answer is that as a member of Congress, Ron Paul should be able to give that answer fairly readily as per the US Constitution:
Article 1, Section 8
The Congress shall have power...
To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;
The fact that it was turned over to the Federal Banking Reserve was wrong, and that Bernanke can not give a direct uniform value is frightening.
But then again, my definition of a dollar is a dollar's worth of labor. For minimum wage of $7.25/hr that is roughly 8 minutes and 17 seconds. The
rank and file of Congress receive $174,000/yr. Since that is a flat rate and they often have longer sessions with several breaks, let's just assume a
40 hour week 52 weeks a year for $83.65 an hour. That is 43 seconds work for a dollar.
In other words, by the time a minimum wage worker at Mc Donalds has made $1 working the drive thru by filling 3 orders and welcoming the next car
(company average time is 2 minutes 36 seconds). A Congressman (that isn't fulfilling the Constitutionally mandated requirements of the job) has made
$11.56
That is the problem of describing relative purchasing power as the value of a dollar. Because assuming no other expenses, a 2011 Hyundai Accent GL for
$10,705 (not including tax, title and destination charges--the cheapest car on the market). The worker at Mc Donald's will have to work roughly 1469
hours (or 37 weeks without income tax withholdings) the Congressman roughly 128 hours (or 3.2 weeks--same no income tax deductions) to pay for that
car. Figure in average cost of living and it extends that timeframe naturally.
Fiat currency's greatest flaw is the relative purchasing power versus the amount of labour required to obtain it. And to put it all in perspective, as
Chairman of the Federal Reserve, Congress paid Bernanke $199,700 in 2010. Which is less than Ron Paul was paid.
edit on 3-3-2011 by Ahabstar
because: (no reason given)
