Posted on 03/20/2016 6:23:09 PM PDT by SkyPilot
Over the past decade, we've been told that inflation has been tame -- actually below the target the Federal Reserve would like to see. But if that's true, then why does the average household find it harder and harder to get by?
The ugly reality is that the true annual cost of living is far outpacing the government's reported inflation rate. By nearly 10x in many parts of the country.
This week, we welcome Ed Butowsky, developer of the Chapwood Index, to the program. His index is a 'real world' measure of how prices are increasing much faster than the wages of the 99% can afford:
In my business, I wanted to make sure that I was building portfolios that weren’t just efficient but got people the rate of return that they needed. I thought: My goodness, what I need to do is give people a list of everything they spend money on and have them track quarter by quarter exactly their increases, so I can do a better job as a financial advisor in determining what return I need to target.
I got a hold of a list of 50 major metropolitan areas and found people in every city and I gave them a job: I asked everybody to send me what items they spend their after-tax dollars on. I got about 4,000 different items. Then I took the 500 that most frequently appeared on the list and we've been tracking specifically these same items in every city since that period of time. I weight this list based on what percentage of a normal income people spend on each item.
(Excerpt) Read more at zerohedge.com ...
I am still waiting for Nabisco to lower the retail price for Oreos now that making them is so much cheaper in Mexico. /sarc
I had no idea. Thank you for the education.
The only reason I found the one like mine is that my dad knows the guy who owns the NC dealership and encouraged me to check.
His inventory was pretty much the same then I saw the one like mine and had to double take the sticker price. 4WD really wasn’t a priority but I can be flexible. All I wanted was a V6.
I called and booked a test drive but it was sold the next day. After the runaround from the guy here, I called them back up and paid a visit. After a few minutes, I put a deposit down and they would get one on order.
The expected time was a month. No problem. Not in a massive rush.
I was almost home about 5 and got a call. The salesguy found one in transit here and traded some for it. It was in a week later and even the color I liked. It was picked up the following weekend.
I really think most of older people recognize what luxuries are. We may not want to do without them...but at least we know what they are.
I think the young people think these are necessities.
Anyone who buys groceries knows that the true inflation for grocery items is probably at least 25% over the last 5 years. The official figures are a total crock.
We’re farmers and borrow large amounts of money, interest rates were 19% under Carter. Just one of the times we almost went broke.
this is why americans are ticked at the GOPe, they have feathered their own nest and to hell with economic patriotism.
Yeah, that's like #467 of the 10000 sell outs the GOPe has foisted on the populace
F the GOP
Everyone I know goes out to eat nearly every day, sometimes multiple times a day!
WTH people!
When you are going OUT to eat... what you are saying is... I am rich enough to afford a chef and servants to serve me.
$25 stylist hair cuts? $6 cups of coffee? WHAT!!?!?!
Dude, news flash! coffee is FREE at the commercial check out counter at Lowes, or at the Sherwin Williams store!
“The illusion will continue as long as it's profitable to continue the illusion. At the point where the illusion becomes too expensive to maintain, they will just take down the scenery, they will pull back the curtains, they will move the tables and chairs out of the way and you will see the brick wall at the back of the theater.” ― Frank Zappa
True. And people buy every new piece of tech that comes out, it seems like. And new shoes every couple months. Everything has to be bright, shiny, new, and easy.
For single people or a couple without kids going out to eat is cheaper then buying the ingredients and spending time to cook and clean up. Restaurants get better quality food at cheaper prices than the Joe Blow schlub on the street. Especially meats and steaks. I know I was part of that racket.
Because I usually keep my cars 10+ years I always get a a manual transmission. An automatic transmission has a shelf life of 150K give or take. I have never had an auto transmission last over 160K. Manual transmissions have an indefinite shelf life clutch not included. a clutch job is like a brake rebuild job in cost maybe $500 at the most. A new transmissions is $3500 bucks.
That’s what I’ve been calling Obamasizing. The packing amounts have been decreasing while the prices continue to rise. If we had a real media, this outrage would lead every newscast. Most people don’t even know this is going on until you point it out to them.
$25 for a stylist haircut? Point me in that direction!!! :)
I have two TVs and they’re both on antennae. I get way more than I have time to watch and I’m 100% retired.
I like to buy premade salads at the supermarket for my dinner.
Last time I went, they had put the salad in a new container that was perhaps 3/4 of the old one. Same price, though.
So you are getting screwed on both price and package size.
Back in my college days, a nice meal was a can of tuna, a can of cream of mushroom soup, a box of mac & cheese, and some frozen veggies. That recipe cost right about $1, and was enough for 2 good sized meals. Not any more.
The 6oz can of tuna is now nearly 3x what I remember paying, and as a bonus, it's now 5 oz, rather than 6oz. And have you priced mac & cheese? Jeez! Even the discount brands are really high. Frozen veggies, not very cheap either, even for the house brands. That same recipe is now between $4 & $5, and the amount you've got is substantially less than one used to get.
Another example is OJ. Not all that long ago I used to complain about paying $2.50 a carton for "real" (not from concentrate) OJ. Now, a carton is close to $4.00, but the best part is that the carton is no longer a half gallon. The carton has shrunk from 64oz to 59oz.
Heck, the other day I saw a convenience store stocking a "case" of soda that had 18 cans!
And eating out? I very rarely go to a "real" restautant any more, as any meal, even a "discount" lunch, will cost at least $8, once you include tax & tip. Something really frightning is that I remember when McDonald's first introduced their Quarter Pounders & QP w/ Cheese. The QC was .59, and the QPwC was .69! A "regular" McDonalds meal was right about $1.
Mark
That's what the barber shop costs around here. A 'stylist' is a lot more, from what I hear.
Catch 22
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