Dear Senator

Dear Senator Chaffetz,

I am a sixth grader from Spanish Fork city. I have been learning about the crisis of Inflation, and think that we should act to stop it. Because people are using money they don’t have and getting into debt, more money is required to enter circulation to keep the banks in business. Our money is now worth less, which makes a horrible cycle that creates chaos. First, people are foolish and use loans for EVERYTHING. The banks supply the loans, but it takes forever to get the loans paid back. Then the banks go bankrupt because they never get the loans back. Then, the government must supply money. How do they do this? They create more money!

Take aluminum for example. Back when aluminum was first mined, it was considered a noble metal along with silver & gold. Wait a minute, let me rephrase that. It was even more valuable than gold! Napoleon III served his most important guests with aluminum plates. Others? They had to settle for gold. Look at aluminum now! You find it everywhere. It’s practically the ideal metal! By creating more money, the government is solving one problem, but creating another unknowingly. Our money is like aluminum now. 70 years ago there was no dollar store, only the “Dime Store”. Even longer ago, finding an aluminum block was amazing. THEN:

Bobby: “Hey mom! I found an aluminum nugget!”

Mom: “What did you say Bobby? An aluminum nugget?

Bobby: “Yeah, mom!”

Mom: “We’re RICH, bobby! We are saved!”

NOW: you’d sell it for 20$.

Gas prices- 1999: 89¢ per gallon 2010- about 2$ per gallon!

These are two different examples of inflation. Aluminum? Only an example. Money? A real crisis that we must act upon. I believe I have a solution.

First of all, I need you to communicate to others to take action. Here is what I think should be done:

1. We find some way to pass a law where you can only get in debt for 2 things: a car and a house. That way, banks don’t give out so many loans that they must shut down. Then, new money stops being poured out so no prices go up. In this way, companies can stop raising prices so customers are satisfied. Prices go up in stores because they need more money to pay their workers. The workers demand higher wages because they need the money to pay for food and other things. They need so much money because stores’ prices are going up! This will stop if people stop getting in debt. If we can prevent this, our economy will improve and inflation will be stopped! I know that this is a lot to say for an 11-year old, but I can see improvement in our future if we bring this plan into action.

--Ian Sannar--