The EPI reflects prices of goods and services people tend to buy frequently, such as food, utilities, and fuel. The CPI includes a more comprehensive set of prices of all consumer products and services, including big-ticket items such as cars, appliances, and housing -- things people generally don't buy everyday.
Re: The Con
cat tail
4/18/2012 5:26:51 PM
It's a major con. Persuade retirees they only deserve a 2% COLI on their SS payments as a way to keep the already bankrupt social security trust alive a few more years.
EPI
AskAsa
4/18/2012 5:23:21 PM
Thank you for bringing the EPI to light. What are some of the other common consumer items they use to make the measurement?
The Con
Dex
4/18/2012 5:16:49 PM
The CPI is a tool designed to fool Social Security recipients and average Americans who hope to get an annual salary increase to "break even." We're falling behind because the reality is that it costs more to live today than yesterday, no matter how the Fed plays with the statistics.
I can tell you it makes you rethink forcing a kid to stay in college if he isn't putting any effort into it. You can only justify the cost if you feel your kids are really going to benefit from it.
Yes, that is one scary chart. I don't have to start paying for six years but if the trend continues -- hard to believe -- I would have to consider advising my kids to to something else. Maybe a boycott in favor of Khan Academy, which is a world-class education at no cost.
Someone mentioned soaring college costs. Just take a look at this chart to see how much they have soared.
Re: The inflation fallacy
back2basicz
4/18/2012 3:30:39 PM
PC,
The CRB Index(The Commodity Index) is basically back where it was in 2005 measured in Gold.
Which basically means that there is no Commodity Inflation measured in Terms of Real Money.
In terms of Fiat Money printed at will by the Government;its a completely Different story.
Ashish.
Re: The inflation fallacy
back2basicz
4/18/2012 3:27:05 PM
ImpactNow,
You are mistaken in assuming that if Government Inflation Numbers were higher;Private Sector Salaries or for that Matter Pensions would definitely rise.
Here's why-
First the Question of Pensions-
Even if they do rise in Nominal Terms;In Real Terms you will still Lose.Why is that?
Because the US Government is BANKRUPT!!!
More than Half of its current Spending constitutes of Debt which is Monetized by the US Federal Reserve[Basically Money printed out of Thin Air].
And lets not forget that it is already spending way,way more than it earns.
Also, today more than Half of the Working Age Population in America pays ZERO Federal Income Taxes.In such a sceanario the incentive to force the Govt to cut spending is Next to Zero;So the Govt will Spend and Spend and Spend Untill it Goes Broke!!!
This Cycle is not going to continue forever.
Either The Government cuts spending or It Defaults Explicitly or Implicitly[Through Inflation as it is doing today].
What happens when there is No Money for all those Pension Promises made?
You don't have to look very far-Look at Jefferson County in Alabama or Vallejo in California
http://globaleconomicanalysis.blogspot.com/2011/07/jefferson-county-alabama-hires.html
http://globaleconomicanalysis.blogspot.com/2011/01/vallejo-bankruptcy-plan-offers.html
http://globaleconomicanalysis.blogspot.com/2011/02/are-teachers-special-is-anyone-why.html
But the Big Blasts are yet to come-That will happen when a State like Illinois or California defaults on all its obligations.
http://globaleconomicanalysis.blogspot.com/2010/02/illinois-pension-fund-61-billion.html
Most of the things which Governments have promised their citizens or employees cannot and will not be met in Real Terms;In fact I have serious doubts whether they will be met at all-Demographics are changing so fast;that Today's Young Adults will balk at paying for the benefits of their Seniors when they have Serious Doubts if they will ever get a share of those Benefits!!
Even if your Pension or Benefits do increase they will NEVER keep pace with Real Inflation.
And for the other issue you raised was about Private Sector Raises
The Private Sector is even today willing to fight and Pay Top Dollar for people with the right skills which are in short supply.
How else can you explain that anyone with anything to do with the Shale Gas Boom or Football stars or Musicians,etc,etc are getting paid way-way more than other people in this Economy?
Regards
Ashish.
Re: Nothing New here Folks,Move Over...
back2basicz
4/18/2012 2:55:43 PM
Scott,
The postage rate is an extremely accurate indicator of the Current rate of Inflation prevailing in the Economy.
Your Blogpost was good,but because its over Two years old,would'nt cover the effects of QE1 ,QE2,Operation Twist,LTRO1 and LTRO2 fully.
To get an appreciation of how much worse things have become since then you have to look at by how Much the Monetary Base of Global Central Banks has increased.The numbers are mind-boggling and all that liquidity (from the US,Europe, Japan, China, UK,Switzerland) is and will continue to feed into the wider economy creating unbelievable amounts of Inflation.
Not a good chart to look at...
Ashish.
The blogs and comments posted on Investor Uprising do not reflect the views of Investor Uprising, PRNewswire, or its sponsors. Investor Uprising, PRNewswire, and its sponsors do not assume responsibility for any comments, claims, or opinions made by authors and bloggers. They are no substitute for your own research and should not be relied upon for trading or any other purpose.
|
 |
Latest Blogs
Telecom-equipment maker Ciena is a stock trader’s dream, as long as the timing is correct.
The FTC is offering a $50,000 cash prize to the person or group that can come up with a solution to those annoying robocalls.
Akamai is in the middle of four significant tech trends.
John Malone of Liberty Media will be taking over Sirius XM satellite radio when the existing CEO Mel Karmazin steps down. What's it mean?
Demand for students of the humanities exists, despite widespread aspersions on the discipline.
IU Education
Resources to help you become a better investor
Investor Uprising on Twitter
25 market-moving companies we're tracking
|
Tweet This