Purchasing Power Quotes & Sayings

Broadly speaking, Keynesianism means that the government has a specific responsibility for the behavior of the economy, that it doesn't work on its own autonomous course, but the government, when there's a recession, compensates by employment, by expansion of purchasing power, and in boom times corrects by being a restraining force. But it controls the great flow of demand into the economy, what since Keynesian times has been the flow of aggregate demand. That was the basic idea of Keynes so far as one can put it in a couple of sentences. — John Kenneth Galbraith

Corporations don't create jobs, customers do. So when all the economic gains go to the top, as they're doing now, the vast majority of Americans don't have enough purchasing power to buy the things corporations want to sell - which means businesses stop creating enough jobs. — Robert Reich

Exercise your purchasing power as a consumer, volunteer and bring joy to those in need, and share your experiences, tell your stories, and inspire others along the way. — Blake Mycoskie

No economy can continue to function when the vast middle class and everybody else don't have enough purchasing power to buy what the economy is capable of producing without going deeper and deeper into debt. — Robert Reich

The word VALUE, it is to be observed, has two different meanings, and sometimes expresses the utility of some particular object, and sometimes the power of purchasing other goods which the possession of that object conveys. The one may be called 'value in use;' the other, 'value in exchange.' The things which have the greatest value in use have frequently little or no value in exchange; and, on the contrary, those which have the greatest value in exchange have frequently little or no value in use. Nothing is more useful than water; but it will purchase scarce any thing; scarce any thing can be had in exchange for it. A diamond, on the contrary, has scarce any value in use; but a very great quantity of other goods — Adam Smith

We need a mobilized and active civil society using its purchasing power to demand sustainable products and practices. It is also essential that governments commit to the future, creating fiscal and regulatory conditions for sustainable policies to thrive. — Guilherme Leal

Need is not demand. Effective economic demand requires not merely need but corresponding purchasing power. — Henry Hazlitt

Furthermore, there is no good ethical or economic reason for asking workmen and current producers to forego all economic gain in order to increase the purchasing power of all the wealth accumulated in past years. — Charles E. Wilson

The wisest and best are repulsive, if they are characterized by repulsive manners. Politeness is an easy virtue, costs little, and has great purchasing power. — Amos Bronson Alcott

It has now been over 7 years since Congress last raised the minimum wage to its current level of $5.15 per hour. Since that last increase, Congress's failure to adjust the wage for inflation has reduced the purchasing power of the minimum wage to record low levels. — Jon Corzine

If you print money like in Zimbabwe ... the purchasing power of money goes down, and the standards of living go down, and eventually, you have a civil war. — Marc Faber

I do not mean to impugn the social justice and social expediency of the redistribution of incomes aimed at by N.I.R.A. and by the various schemes for agricultural restriction. The latter, in particular, I should strongly support in principle. But too much emphasis on the remedial value of a higher price-level as an object in itself may lead to serious misapprehension as to the part which prices can play in the technique of recovery. The stimulation of output by increasing aggregate purchasing power is the right way to get prices up; and not the other way round. — John Maynard Keynes

...To allow the market mechanism to be sole director of the fate of human beings and their natural environment, indeed, even of the amount and use of purchasing power, would result in the demolition of society. For the alleged commodity, "labor power" cannot be shoved about, used indiscriminately, or even left unused, without affecting the human individual who happens to be the bearer of this peculiar commodity. In disposing of a man's labor power the system would, incidentally, dispose of the physical, psychological, and moral entity of "man" attached to the tag. Robbed of the protective covering of cultural institutions, human beings would perish from the the effects of social exposure; they would die as the victims of acute social dislocation through vice, perversion, crime, and starvation. Nature would be reduced to its elements, neighborhoods and landscapes defiled, rovers polluted, military safety jeopardized, the power to produce food and raw materials destroyed... — Karl Polanyi

If you increase the quantity of money, you bring about the lowering of the purchasing power of the monetary unit. — Ludwig Von Mises

The price of every thing rises and falls from time to time and place to place; and with every such change the purchasing power of money changes so far as that thing goes. — Alfred Marshall

The day he learned that he was terminally ill was the day he lost interest in his purchasing power. — Mitch Albom

Necessary policemen, firemen, street cleaners, health officers, judges, legislators and executives perform productive services as important as those of anyone in private industry. They make it possible for private industry to function in an atmosphere of law, order, freedom and peace. But their justification consists in the utility of their services. It does not consist in the "purchasing power" they possess by virtue of being on the public payroll. — Henry Hazlitt

That it is logical, fair and reasonable to maintain the purchasing power of an hour's work in terms of goods and services the employee must purchase in his daily living. — Charles E. Wilson

Basically, unless you're willing to write down debts and save the economy, you're going to have deflation and a steady drain in purchasing power - that is, shrinking markets. — Michael Hudson

A good starting point [in the measurement of investment risk] is the preservation and enhancement of your purchasing power in real terms. — David Dreman

Visitors say, 'Real shrunken heads! Wow! How were they made? By slitting the skin, taking out the skull and brains and steaming them with hot sand? Gross!' But what no one asks is: how did they get here? What are they doing hanging up in a university museum in the south of England? Once you start to answer that question, you realize that shrunken heads like these are a product as much of European curiosity, European taste and European purchasing power as they are of an archaic tribal custom. It is time to turn the spotlight round and point it back at people like you and me, and at our ancestors, who were responsible for bringing hundreds of these heads into museums and people's homes and who delighted in them as much as -- if not more than -- the people who created them in the first place. After all, it is not the Shuar who are pressing their noses to the glass of an exhibition case in an Oxford University museum. — Frances Larson

Naive inflationism demands an increase in the quantity of money without suspecting that this will diminish the purchasing power of the money. — Ludwig Von Mises

Almost three billion people live on less than two dollars a day, adjusted for purchasing power.5 Eight hundred and forty million people in the world don't have enough to eat.6 Ten million children die every year from easily preventable diseases.7 AIDS is killing three million people a year and is still spreading.8 One billion people in the world lack access to clean water; two billion lack access to sanitation.9 One billion adults are illiterate.10 About a quarter of the children in the poor countries do not finish primary school.11 — William Easterly

Singer and actress Gertrude Lawrence once overheard an assistant describing the beauty of a coat she knew she could never even dream of affording. Having ascertained the exact shop, coat and price, Ms. Lawrence returned from her lunch break wearing that coat, apparently in order to flaunt and emphasize her greater purchasing power and, by inference, her superior status. — Sheridan Morley

When capital owners are few, the private-property conduits of necessity create vast savings reservoirs for those few. If there were many owners, the same conduits would broadly irrigate the economy with purchasing power. — Louis O. Kelso

Almost every Fed chairman in the past 60 years has manipulated
interest rates to brighten the economic outlook for incumbent presidents
or newly elected presidents who won by large margins. The
purchasing power of the U.S. dollar has fallen 94 percent in the past
100 years. The only way you can create inflation is by creating more
money that is backed by the same reserve assets; the Fed is the only
entity that can create more money. Ben Bernanke's quantitative easing
(QE) programs have pumped billions of unfunded dollars into the
economy, thereby setting us up for massive inflation in the very near
future. If this isn't a form of financial terrorism, it is incompetence of the highest order. — Ziad K. Abdelnour

In every country except - industrial country except the United States, the government uses its massive purchasing power to negotiate drug prices. That's one of the reasons prices are so much higher in the United States than in other countries. — Noam Chomsky

The reality is that nearly 80 percent of the world's purchasing power lies outside the United States, and if we don't tap those markets, others will. — John Hoeven

Increased wages, higher pensions, more unemployment insurance, all are of no avail if the purchasing power of money falls faster. — Bernard Baruch

And in terms of welfare, of course, the loss suffered will be much greater than the loss in merely arithmetical terms, because the psychological losses of those who are unemployed will greatly outweigh the psychological gains of those with a slightly higher income in terms of purchasing power. — Henry Hazlitt

People should have an escape valve for their money, their assets. If you have substantial financial assets, the government is going to confiscate the purchasing power of those assets and spend it. — Peter Schiff

It is production that creates purchasing power, not the printing press! — Peter Schiff

Now, McDonald's is a very good indicator of the global economy. If McDonald's doesn't increase its sales, it tells you that the monetary policies have largely failed in the sense that prices are going up more than disposable income, and so people have less purchasing power. — Marc Faber

It should be immediately clear that this could be brought about more directly and honestly by a reduction in unworkable wage rates. But the more sophisticated proponents of inflation believe that this is now politically impossible. Sometimes they go further, and charge that all proposals under any circumstances to reduce particular wage rates directly in order to reduce unemployment are "antilabor." But what they are themselves proposing, stated in bald terms, is to deceive labor by reducing real wage rates (that is, wage rates in terms of purchasing power) through an increase in prices. — Henry Hazlitt

It is no more appropriate to speak of a difference between the purchasing power of money in Germany and in Austria than it would be justifiable to conclude from differences between the prices charged by hotels on the peaks and in the valleys of the Alps that the objective exchange-value of money is different in the two situations and to formulate some such proposition as that the purchasing power of money varies inversely with the height above sea-level. The purchasing power of money is the same everywhere; only the commodities offered are not the same. — Ludwig Von Mises

There is another method of obtaining money ... It does not presuppose the existence of accumulated results of previous development, and hence may be considered as the only one which is available in strict logic. This method of obtaining money is the creation of purchasing power by banks. The form it takes is immaterial. — Joseph A. Schumpeter

Fiscal considerations have led to the promulgation of a theory that attributes to the minting authority the right to regulate the purchasing power of the coinage as it thinks fit. For just as long as the minting of coins has been a government function, governments have tried to fix the weight and content of the coins as they wished. Philip VI of France expressly claimed the right "to mint such money and give it such currency and at such rate as we desire and seems good to us" and all medieval rulers thought and did as he in this matter. Obliging jurists supported them by attempts to discover a philosophical basis for the divine right of kings to debase the coinage and to prove that the true value of the coins was that assigned to them by the ruler of the country. — Ludwig Von Mises

To recapitulate: the exchange-ratio subsisting between commodities and money is everywhere the same. But men and their wants are not everywhere the same, and neither are commodities. Only if these distinctions are ignored is it possible to speak of local differences in the purchasing power of money or to say that living is dearer in one place than in another. — Ludwig Von Mises

The price of imported oil in the US doubled between summer 2003 and summer 2005, reducing consumers' purchasing power by more than 1 per cent of gross domestic product. — Martin Feldstein

Property may be destroyed and money may lose its purchasing power; but, character, health, knowledge and good judgement will always be in demand under all conditions. — Roger Babson

When the dollar collapses, it's not doing it in a vacuum. If the dollar loses value, it's doing so relative to some other currency. So the purchasing power that we lose, somebody else gets. — Peter Schiff

Private property works like circuitry in electronics, or piping in hydraulics. It conveys wages to the owners of labor power, as well as the various forms of nonwage property income to the owners of capital. In itself, it is no more responsible for maldistribution of purchasing power than the science of bookkeeping is responsible for bankruptcy. — Louis O. Kelso

An increase in the supply of paper money, and hence a decrease in the purchasing power of the currencies in which most bonds were denominated. A rational investor who anticipated a major war would sell bonds in anticipation of these effects. — Niall Ferguson

Wealth, as Mr Hobbes says, is power. But the person who either acquires, or succeeds to a great fortune, does not necessarily acquire or succeed to any political power, either civil or military. His fortune may, perhaps, afford him the means of acquiring both; but the mere possession of that fortune does not necessarily convey to him either. The power which that possession immediately and directly conveys to him, is the power of purchasing a certain command over all the labour, or over all the produce of labour which is then in the market. His fortune is greater or less, precisely in proportion to the extent of this power, or to the quantity either of other men's labour, or, what is the same thing, of the produce of other men's labour, which it enables him to purchase or command. The exchangeable value of every thing must always be precisely equal to the extent of this power which it conveys to its owner. — Adam Smith

That is simple. In the Colonies we issue our own money. It is called Colonial Scrip. We issue it in proper proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers. In this manner creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay. — Benjamin Franklin

If the practice persists of covering government deficits with the issue of notes, then the day will come without fail, sooner or later, when the monetary systems of those nations pursuing this course will break down completely. The purchasing power of the monetary unit will decline more and more, until finally it disappears completely. — Ludwig Von Mises

Things are going better: there is more growth, less deficit, more competitiveness, better margins for companies, more purchasing power for workers. — Francois Hollande

It may seem strange, but Congress has never developed a set of goals for guiding Federal Reserve policy. In founding the System, Congress spoke about the country's need for "an elastic currency." Since then, Congress has passed the Full Employment Act, declaring its general intention to promote "maximum employment, production, and purchasing power." But it has never directly counseled the Federal Reserve. — Wright Patman

Global interconnectedness has led to the emergence of a new political power, that of consumers and their associations. It is good for people to realize that purchasing is always a moral - and not simply economic - act. — Pope Benedict XVI

If the prices rise in a continuous manner and if the borrower as a result gains a supplementary profit from the sale of the merchandise which he bought with the borrowed money, he will be disposed to pay a higher rate of interest than he would have paid in a period of stable prices; the capitalist, on the other hand, will not be disposed to lend under these conditions, unless the interest includes a compensation for the losses which the diminution in the purchasing power of money entails for creditors. — Ludwig Von Mises

in wartime, economic activity decreases, inflation increases, and real wages and purchasing power begin to fall. Wages at the bottom of the wage scale generally rise, however, and are somewhat more generously protected from inflation than those at the top. — Thomas Piketty

When a country has substituted credit money or fiat money for metallic money, because the legal equating of the over-issued paper and the metallic money sets in motion the mechanism described by Gresham's Law, it is often asserted that the balance of payments determines the rate of exchange. But this also is a quite inadequate explanation. The rate of exchange is determined by the purchasing power possessed by a unit of each kind of money. — Ludwig Von Mises

Each of us must also sell something, even if for most of us it is our own services rather than goods, in order to get the purchasing power to buy. — Henry Hazlitt

Here's the dirty little secret: Fiat currency is designed to lose value. Its very purpose is to confiscate your wealth and transfer it to the government. Each time the government prints a new dollar and spends it, the government gets the full purchasing power of that dollar. — Michael Maloney

Public concern for the environment cannot be addressed by placing the blame on growth without spelling out the causes of growth. Nor can an explanation be exhausted by citing "consumerism" while ignoring the sinister role played by rival producers in shaping public taste and guiding public purchasing power. Aside from the costs involved, most people quite rightly do not want to "live simply." They do not want to diminish their freedom to travel or their access to culture, or to scale down needs that often serve to enrich human personality and sensitivity. — Murray Bookchin

The gold standard makes the money's purchasing power independent of the changing, ambitions and doctrines of political parties and pressure groups. This is not a defect of the gold standard; it is its main excellence. — Ludwig Von Mises

The mistake in the argument of those who suppose that a variation in the quantity of money results in an inversely proportionate variation in its purchasing power lies in its starting-point. If we wish to arrive at a correct conclusion, we must start with the valuations of separate individuals; we must examine the way in which an increase or decrease in the quantity of money affects the value-scales of individuals, for it is from these alone that variations in the exchange-ratios of goods proceed. — Ludwig Von Mises

The illusiveness of this concept of national income is to be seen in its dependence on changes in the purchasing power of the monetary unit. The more inflation progresses, the higher rises the national income. — Ludwig Von Mises

If people begin to use the full power of conscience in all the choices they make in their everyday life, from presidential elections to purchasing things in the grocery store, the world will change. — Ilchi Lee

The central element in the economic problem of money is the objective exchange-value of money, popularly called its purchasing power. — Ludwig Von Mises

We can guarantee cash benefits as far out and at whatever size you like, but we cannot guarantee their purchasing power. — Alan Greenspan

Cash - in savings accounts, short-term CDs or money market deposits - is great for an emergency fund. But to fulfill a long-term investment goal like funding your retirement, consider buying stocks. The more distant your financial target, the longer inflation will gnaw at the purchasing power of your money. — Suze Orman

As UC Berkeley economics professor Brad DeLong put it to me:

You get famine if the price of food spikes far beyond that of some people's means. This can be because food is short, objectively. This can be because the rich have bid the resources normally used to produce food away to other uses. You also get famine when the price of food is moderate if the incomes of large groups collapse.... In all of this, the lesson is that a properly functioning market does not seek to advance human happiness but rather to advance human wealth. What speaks in the market is money: purchasing power. If you have no money, you have no voice in the market. The market acts as if it does not know you exist and does not care whether you live or die.

DeLong describes a marketplace that leaves people to die - not out of malice , but out of indifference. — Annalee Newitz

As long as we place millions of Indians at the canter of our thought process, as long as we think of their welfare, their future, their opportunities for self realization we are on the right track. For India can grow, prosper, flourish only if they grow, prosper, flourish. We cannot grow by any esoteric strategies. Our purchasing power, our economic strength, our marketplace all depends on the prosperity of our people. — Mukesh Ambani

Ah, the power of two. There's nothing quite like it. Especially when it comes to paying utility bills, parenting, cooking elaborate meals, purchasing a grown-up bed, jumping rope and lifting heavy machinery. The world favours pairs. Who wants to waste the wood building an ark for singletons? — Sloane Crosley

In a monetary system, most of us live near our work with a house, car, and lifestyle we can afford (or, all too often, cannot afford), rather than the one we prefer. We are only as free as our purchasing power permits. Even many wealthy people today select a residence mainly to impress others with their status. Lacking a true sense of self worth, many live to impress others. — Jacque Fresco

Purchasing power is a license to purchase power. The old proletariat sold its labour power in order to subsist; what little leisure time it had was passed pleasantly enough in conversations, arguments, drinking, making love, wandering, celebrating and rioting. The new proletarian sells his labour power in order to consume. When he's not flogging himself to death to get promoted in the labour hierarchy, he's being persuaded to buy himself objects to distinguish himself in the social hierarchy. The ideology of consumption becomes the consumption of ideology. — Raoul Vaneigem

Even if index numbers cannot fulfill the demands that theory has to make, they can still, in spite of their fundamental shortcomings and the inexactness of the methods by which they are actually determined, perform useful workaday services for the politician. If we have no other aim in view than the comparison of points of time that lie close to one another, then the errors that are involved in every method of calculating numbers may be so far ignored as to allow us to draw certain rough conclusions from them. Thus, for example, it becomes possible to a certain extent to span the temporal gap that lies, in a period of variation in the value of money, between movements of Stock Exchange rates and movements of the purchasing power that is expressed in the prices of commodities. — Ludwig Von Mises

Actually, I have no regard for money. Aside from its purchasing power, it's completely useless as far as I'm concerned. — Alfred Hitchcock

The banker, therefore, is not so much primarily a middleman in the commodity "purchasing power" as a producer of this commodity. However, since all reserve funds and savings today usually flow to him, and the total demand for free purchasing power, whether existing or to be created, concentrates on him, he has either replaced private capitalists or become their agent; he has himself become the capitalist par excellence. — Joseph A. Schumpeter

An underpaid man is a customer reduced in purchasing power. He cannot buy. Business depression is caused by weakened purchasing power. Purchasing power is weakened by uncertainty or insufficiency of income. The cure of business depression is through purchasing power, and the source of purchasing power is wages. — Henry Ford

They dug up so much silver to pay for their wars of conquest that the metal itself dramatically declined in value - that is to say, in its purchasing power with respect to other goods. — Niall Ferguson

And I am convinced that a single focus on preserving the purchasing power of the dollar, in effect, guarding against inflation or deflation, actually creates a solid foundation for the greatest job growth and the strongest economy that America can have. — Kevin Brady

if we as consumers do not understand what marketing does to us, we are not defining what is enough; we are letting others determine the definition for us. Does the pull of new clothes for a new season influence your decision-making and purchasing power? — Jeff Shinabarger

Instability mostly comes from the interface between the fact that the banks (or shadow banks) can create credit, money, and purchasing power in infinite quantities if we don't constrain them, and the fact that credit is primarily created to fund the purchase of urban real estate and land, which is somewhat fixed in supply. — Adair Turner

People fail to realize there's a difference in kinds of money. There is old money and there is new money. Old money has political power but new money has only purchasing power. (1963) — LIFE Magazine

Other inflationists realize very well that an increase in the quantity of money reduces the purchasing power of the monetary unit. But they endeavour to secure inflation none-the-less, because of its effect on the value of money; they want depreciation, because they want to favour debtors at the expense of creditors and because they want to encourage exportation and make importation difficult. — Ludwig Von Mises

The greatest danger to an adequate old-age security plan is rising prices. A rise of 2% a year in prices would cut the purchasing power of pensions about 45% in 30 years. The greatest danger of rising prices is from wages rising faster than output per man-hour ... Whether the nation succeeds in providing adequate security for retired workers depends in large measure upon the wage policies of trade unions. — Sumner Slichter

BJP is committed to transform the agriculture sector. We want to increase farmer income and the purchasing power of villages. — Narendra Modi

Consumers have not been told effectively enough that they have huge power and that purchasing and shopping involve a moral choice. — Anita Roddick

Is it any more moral to dilute the value of the purchasing power of the money you hold in your wallet than it is for the farmer to dilute the milk supply with water? — Ron Paul

Which is worse? Lust for the purchasing power of money, or the kind of lust that covets power over others? Let the history of 20th Century socialist revolutions answer that question. — A.E. Samaan

Jesus Christ, who had all the power in the world, saw us enslaved by the very things we thought would free us ... He laid aside the infinities and immensities of His being and, at the cost of His life, paid the debt for our sins, purchasing us the only place our hearts can rest, in His Father's house. Knowing He did this will transform us from the inside out. — Timothy Keller

Let us merely discuss the question, what consequences would necessarily follow if, ceteris paribus, with an increasing quantity of money, prices were restricted to the old level by official compulsion? An increase in the quantity of money leads to the appearance in the market of new desire to purchase, which had previously not existed; 'new purchasing power', it is usual to say, has been created. If the new would-be purchasers compete with those that are already in the market, then, so long as it is not permissible to raise prices, only part of the total purchasing power can be exercised. — Ludwig Von Mises

The greatly increased consumption of alcoholic beverages is very largely a direct result of the increased purchasing power created by wartime expenditures. — William Lyon Mackenzie King

Printing money is merely taxation in another form. Rather than robbing citizens of their money, government robs their money of its purchasing power. — Peter Schiff

If we look at it now from the consumer's point of view, we find that he can buy less with his money. Because he has to pay more for sweaters and other protected goods, he can buy less of everything else. The general purchasing power of his income has therefore been reduced. — Henry Hazlitt

Any money the government spends must be taxed, borrowed or conjured out of thin air by the Federal Reserve, and that will reduce sound private investment. Obama has no real wealth to inject into the economy. He can only move around existing money while inflation robs us of purchasing power. Meanwhile, private investors who might have produced a better engine, battery, computer, cancer treatment or other wealth-creating and life-enhancing innovations hold back for fear that big government will undermine productive efforts. — John Stossel

Capitalists desire purchasing power. Socialists lust for the power to plan society. Which is worse? — A.E. Samaan

The market insures that any quantity of money is capable of performing all the work required of a medium of exchange by adjusting its purchasing power to the underlying conditions of supply and demand. — Joseph Salerno

The majority of any society comprised, Smith knew, not landlords or merchants, but "servants, laborers, and workmen of different kinds," who derived their income from wages. Their welfare was the prime concern of economic policy, as Smith conceived it. "No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable," he wrote. "It is but equity, besides, that they who feed, clothe and lodge the whole body of the people should have such a share of the produce of their own labour as to be themselves tolerably well fed, clothed, and lodged." The chief economic concern of the legislator, in Smith's view, ought to be the purchasing power of wages, since that was the measure of the material well-being of the bulk of the population. (p. 64) — Jerry Z. Muller