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The declining standard of living in 1 simple chart

Here is the proof that the Fed steals from us in 1 simple chart.


Could anything else be simple to understand?

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This graph completely misses the loss

of wealth before the divergence of money from the value of gold.

The Federal Reserve act commenced them robbing us of the wealth that physically existed in the world. In other words, they took the gold.

In 1971, they decided that wasn't enough so they broke the tie and stole future money. In other words, they floated debt on every aspect of society - governments, companies and individuals.

This graph shows the latter but not the former.

What we need is a tool to show how productivity for the average individual worker has grown 52 times since 1913 (my research). The value we have become accustomed to spending has grown 12 times. (My average shows we buy 11 times the goods and 13 times the services as back then.) This SHOULD HAVE still led to an increase in saved wealth (either by physical savings or by reduced work hours) of 4 times.

So, where has "hours worked" gone? I found that we have gone from a "family average" of 35 hours/week to one of 84 hours/week. This is another 2.4 times increase we should have turned into savings as well.

The total of these two factors is that we should be receiving 9.6 times as much value for our family's total work week today than we did a century ago, even accounting for increased standard of living. However, we have not become a world of wealthy individuals. We have become seriously in debt. How much is tricky to gauge but I would guess it closely relates to the change in nominal value of the dollar. Let's see:

Since the dollar is now worth around 1.1825% ($18.92 / $1600.00 in gold) of what it was back then, we must have lost out on the possible prosperity gains by a factor of about 8.8 times. ( ( 1 / .011825 ) / 9.6 ) = 84.56/9.6 = 8.80902

If we consider that gold price is held too low, the numbers become much worse. At $2500/oz, we are only prosperous to the tune of one in 13.76 parts. My gut feeling is that it's even worse than that.

The short version: If we had stuck with gold, not lost our control over wages, worked identical hours by the same number of people and received the benefits of tech advancement in equal proportion as our contribution... If so, we could live identical lives as today and retire in 1/8th to 1/15th of the time.

Just imagine retiring in 2-5 years while being the sole breadwinner of the family. This is the message that I believe will win over the people.

Put that in your chart and post it! :)

I didn't "get" the secretary analogy

If there is a tech-boom and you get downsized, fired, or are NOW required to adopt and find more work -- how is that dot connected to the roll of big bankers?

I mean yes -- they steal (civilians are compliant with) value out of the monopoly currency -- and yes that would effect the purchasing power of companies and the secretary -- but how does that connect with technology making the secretary redundant? Are there more or less secretaries today? Or does she now have the freedom to handle greater responsibilities?

An Executive Secretary (today) can become a CEO -- it is a highly covetous position occupied by MBA's and Ph.D's. In the pre-tech days this person was a "glorified" secretary often with no business background -- but owing to tech-boom she can handle greater levels of responsibility and she/he is right there when all the big decisions are made. Ursula M. Burns rose up Xerox from the Executive Secretary position -- now Madam Chairman and CEO.

I just think it's a poorly crafted argument whose conclusion happens to be right -- bankers bad (correct).

The answer is....

The tech boom should have nothing to do with big bankers.

Under free(er) market conditions and sound money as in before 1971, then technology booms should create a higher standard of living for all. But since 1971, that stopped happening.

The reason being the banking cartel stole that "tech boom extra wealth" through inflation and the welfare state.

Protect your assets and profit from the greatest wealth transfer in history.

Cyril's picture



"Cyril" pronounced "see real". I code stuff.


"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

BUMP for great video. Spread far and wide.

BUMP for great video. Spread far and wide.

"Cyril" pronounced "see real". I code stuff.


"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Thanks for the kind comments

Thanks for the kind comments about the video

Protect your assets and profit from the greatest wealth transfer in history.

Cyril's picture


'Welcome. My remarks aside, this video is still much excellent educational content, IMO, which ought to go viral.

"Cyril" pronounced "see real". I code stuff.


"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

Actually, this video makes a great point

Actually, this video makes a great point although it is somewhat inaccurate in "where did ALL THAT 'money' go"...

... yes, money debasement is directly for the central bankers, planners, and statists to manage quietly the spreadsheets they enslave everybody into - while THEY, DISGUSTING LEECHES, PROFIT directly of the money flows they have redirected to their control, in tight hands and with the big govt's guns to protect them.

The video is only inaccurate, IMO, in the proportions:

it omits or forgets that ALSO A BIG PART of the theft is to sustain FALLACIOUS WELFARISM, EVER GROWING ... because, besides the MSM, the welfarism is THE SECOND BEST TOOL for TPTB to pursue their plans quietly, inconspicuously - keeping "the masses" happily enslaved.

STEALING from the sweat of some to redistribute to others WHO WILL ENDORSE THE SCHEME, because they are beneficiaries.

We are only humans. We are fallible. It takes a lot of morality to NOT MILK the system when we have all the opportunities to do so.

I have never been on welfare for a day in 18 years of my entire worklife. Never dependent on anyone but my own family, on my own savings (or bank debts). But that's not the point, although that sure helps me to stay outraged by the redistribution rhetoric...

I am indeed the perfect COW TO BE MILKED. Until I collapse one day. God forbid. My mother and step father were the same. Never took a penny from the state. While they gave so much.

Still, I can find socialists giving me lessons. "lol"

But, anyway.

Remember, ALWAYS:


It's not just about Circuses. It's also about the bread, the "FREE STUFF".

That's HOW THEY STAY in control of their human commodities.


"Cyril" pronounced "see real". I code stuff.


"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Not convinced yet.

It is an interesting hypothesis but I am not convinced yet. Scenario 1: two industries: manufacturing and service. Service pays 1/6 manufacturing. Both industries increase productivity 5 fold. 90% of manufacturing jobs become service jobs. Result no change in income while productivity increased in both jobs.

I am not quite sure what you are not convinced of....?

If it is that productivity increases are passed onto workers in a free market, then the graph clearly shows that until the government interferes, then it does. Perhaps you just did not like my explanation of how that takes place?

If you could clarify, then I would be happy to try to explain.

Also, in your scenario, are you saying that that is what has happened in America since 1971, and you are trying to reconcile that fact with my explanation.

Thanks for your question. :)

Protect your assets and profit from the greatest wealth transfer in history.

Im not sure I understand.

Im not sure I understand. Technology allowed the secretary to work less? In reality that secretary would be fired or given more responsibility if she had more time. Instead of just doing the invoicing, she would man the phones, order supplies, etc. She would be doing the work of maybe 3 or 4 other people. This would save the company money and allow more capital to be allocated to other things possibly creating newer, higher paying jobs. How is the Fed robbing the difference? I think the gap in the graph can be explained in part by technology outpacing workers reeducating. A lot of the workforce is forced to take lower wage jobs because they can't keep up. The increase in output is explained by the advancing technology. Thats just my take. I think I agree with what you are trying to say, maybe it just needs a little more explaining.

works less to produce each item

The secretary used to use carbon paper and a typewriter to fill out a form. Now forms are electronic. A secretary can produce lots more paper work in an hour than used to be the case. That means less work for each item.

Another point, I did not include for time sake of time....

Technology is exponentially increasing in nature (Moore's law). Yet the graph shows productivity increasing linearly. Therefore, something that retards technological advancement must also be growing exponentially as well. No prizes for Daily Paulers figuring out it is government. :)

Protect your assets and profit from the greatest wealth transfer in history.

Thanks for our comments.

If it were technology outpacing workers reeducating, then it would be a smooth graph, and not an abrupt right turn at 1971.

You correctly identified the cycle of how the secretaries lifestyle improves, through a new higher paying job.

The way the Fed steals the difference, is through inflation, and allowing an exponentially growing government.

Protect your assets and profit from the greatest wealth transfer in history.

Thanks for replying. It is

Thanks for replying. It is definitely not a coincidence that this started when Nixon nixed the gold standard. Inflation is a hidden tax on the poor that not a lot of people really see. However the income tax is just straight up theft, yet people still believe its all for the roads :/ Serfs in the middle ages woulda been like "wtf man, you're a slave."

Another way of saying what I've been saying for a long time

This is how inflation works. Robbing value from the very money we earn. For actual numbers, see

Not saying that the graph

Not saying that the graph shown is wrong, but it hardly "speaks for itself". It's easy to make charts and graphs and numbers lie, what is important is the story (or theory) behind the graph. You may have heard this before as, "Correlation does not necessarily mean causation".

I would like to use this graph/video to support my case when I tell my friends/family about the damage the Fed is doing to our country, but I really don't feel like its much to go on. All I have is a chart, and I can't answer a single question about it. How was productivity of the employee calculated independently of wage? If there is such a disparity, why don't people quit their jobs and work for themselves? How is the Fed to blame for this disparity? The video claims the Fed is stealing the difference between wages and productivity, but what is the mechanism of theft? My understanding of economic theory would blame inflation for the theft of wealth from users of a currency, but I have always understood the theft to occur as the devaluation of the currency over time, not as somehow coercing the relationship between employer/employee as the chart would suggest.

I am not even saying the video needs to answer all of these questions, but at least link sources of data where the method of finding the data is explained. A quick google did not find anything.

Please don't take this as overly critical; I really appreciate the video and the point it is trying to make. This chart has the potential to be a very powerful tool, all it needs is a little bit of support.

Thanks for the feedback.

I have made, many videos in my life, and there is a very strong inverse correlation between length of video, and views. I would love to answer all of your questions, but then the video becomes too long and , is watched by 98% less people. I hope you understand.

The fed does steal via inflation and not via employment interference.

If my memory serves Episode 4 describes the mechanism of inflation and more about the Fed.

If you check out all of the videos on my channel, the pieces begin to fit together. I hope this helps.

Protect your assets and profit from the greatest wealth transfer in history.

Creating Boatloads of Money Out-Of-Thin-Air

I have all the graphs needed. And with very little effort (googling) you can too. Govt. It's all due to inflating the currency. Unlimited money creation after leaving the gold standard. The video is spot on. It can't cover the entire story in a couple minutes. Prices should be going down. The industrial age provided goods and wealth at continually declining prices. Wages went up too b/c output per individual went up. Not good for aristocracy and hierarchy. What were the elites to do when the working class was able to live easily and without being controlled by monied interests? So, government became the tool to destroy and transfer excess wealth from technology. Hence never-ending wars, a war on drugs, and ever-increasing size and budget of govt. Very effective at destroying excess wealth.

Money creation out of thin air (fractional reserve banking and Federal Reserve) did the rest of the job of transferring the remaining wealth from the working class and the middle class up to the ruling class. Problem solved. It's not rocket science. Check inflation graphs, money supply graphs, government debt graphs, stock market and housing prices graphs, prison spending, war/military spending, all from the turn of the century till today. And check the income increases in the last forty years of the 1% compared to all other groups. An unbelievably giant spike occurs at the 1971 mark. You have to see it with your eyes to believe it. I'll give you a head start. Do it! http://www.businessinsider.com/chart-of-the-day-inflation-18...

The ABC'S of it in your chart

Thank you for posting, so that we may better prepare for our "new standard of living". We have been fleeced!

Mary 4 RP

Excellent video. Well worth the time watching it.

Thanks for posting.

Your welcome.

Your welcome.

Protect your assets and profit from the greatest wealth transfer in history.