Reflections on the holiday

Tuesday, December 27, 2022

”…Happy Birthday Dear Jesus…” That was the grace said before we dived into the meal at granddaughter Mo’s house on Christmas Day. This old grandpa was a bit surprised but upon reflection considered it right on! You see about half of those present were under the age of nine years old and a long-winded prayer would have escaped their understanding anyway so why not give thanks for the reason for the season? Right on and it was a wonderful prime rib, ham, mac and cheese, green bean casserole and a whole lot more kind of a feast.

The weatherman hasn’t been very kind to us these past several weeks. We in Southwest Nebraska have fared better than say Buffalo, New York where they received 93 inches of snow already this year already and their average is 96 inches for a typical year. Things are a bit backed up to say the least. People trying to travel have been stymied by delayed and canceled flights plus lost luggage, so they made it to their folk’s house for Christmas but the presents didn’t. Even driving on local roads covered with patches of black ice hasn’t been too safe.

Being old and on Social Security Grannie and I are looking forward to a nice raise in our checks next month. The same is promised for an increase in my Air Force Retirement check. Still the reports of inflation, yes we have noticed it, promise to cancel any increase in wealth but hopefully we can keep even.

Inflation inflation — we keep hearing the term but what is it? A dictionary on my internet posted in Economics. a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency. That kind of fits. When I bought my first car back in 1959 I paid around 19.9 cents a gallon to fill it up with gasoline. Today we expect to pay at least three dollars per gallon. As a brand-new 2nd Lieutenant my wages were $322 each month and because I was on flying status, going through pilot training I also received hazardous pay of another $100 per month. Today a brand new 2nd Lieutenant receives $3477 per month. I suspect that the current 2nd Lt is no better off as everything that he has to pay for costs a whole lot more than what I had to pay for my necessities and savings. Each of you probably could tell a similar story.

The question then is why? Why does our dollar keep decreasing in value over time? Unfortunately, our current administration has been illustrating the answer in a big way. Our Congress passes a huge spending bill with no means to pay the thing. So they crank up the printing presses and create money out of thin air. The other alternative would be to raise taxes to cover the projected money that they want to spend however raising taxes is unpopular with those of us who have to pay.

Actually, it isn’t that our government just cranks up the printing presses to provide dollars for us to spend. They actually write promissory notes. Put money in my account now and I’ll pay you back later plus whatever we decide as interest. That is not a good deal because the borrower also counts on inflation to devalue the dollar that he will eventually pay back. I borrow $100 and agree to pay 5% interest for ten years. You receive $100 now and in ten years you have to pay the one who loaned you the money $100 plus the $50 that he earned on interest or $150. But there is a wrinkle and that you get to pay back on the new value of the money due to inflation, say 6% decrease in value, so you only pay back $90 dollars in value of the $100 that you originally borrowed. (The current rate of inflation is around 8%) The government powers that be didn’t have to raise taxes to do that but to me, that is a dishonest way of life.

Your congress just passed a $1.7 trillion dollar program that is totally above the amount of taxes that are forecast to come into the treasury so it will be imperative that our present rate of inflation continue or probably increase. If it was a private individual doing business in that manner he would soon be bankrupt. Sadly it is a possibility that our government will also go bankrupt and total chaos will result. Not a good thing to have our grandchildren to inherit. Your vote is important.

Grannie and I drove many of the streets in McCook last evening to enjoy the Christmas decorations. Our Santa Claus Lane is an annual treasure that I always enjoy. Then it gives us a warm feeling to see so many individual homes that have gone to great effort to shine happy lights on the world. Yes, it has been a very Merry Christmas.

We are looking forward to a Happy and healthy New Year. May it be the same for you and yours.