Posted on 03/12/2011 3:43:20 AM PST by DeaconBenjamin
Memo to central bankers:
Best not to cite the price of the new iPad as an example of why inflation isn't a problem when you head into a working-class neighborhood.
In Queens, New York, on Friday, New York Fed President William Dudley did just that. He got an earful.
After being bombarded with questions about food inflation, Dudley attempted to reassure his audience by putting rising commodity prices into a broader economic context -- but that only made matters worse.
"When was the last time, sir, that you went grocery shopping?" one audience member asked.
Dudley tried to explain how the Fed sees things: Yes, food and energy prices may be rising, but at the same time, other prices are declining.
He then stretched for a real world example. The only problem was he chose the Apple's latest tablet computer that hit stores on Friday, which may be more popular at the New York Fed's headquarters near Wall Street than it is on the gritty streets of Queens.
"Today you can buy an iPad 2 that costs the same as an iPad 1 that is twice as powerful," he said. "You have to look at the prices of all things."
This prompted guffaws and widespread murmuring from the audience, with one audience member calling the comment "tone deaf."
"I can't eat an iPad," another said.
Queens is best known internationally for being home to New York City's two airports, the Mets baseball team and its portrayal in the television program "The King of Queens".
Misjudging your audience is hardly unusual for those in positions of power. In 2007, candidate Barack Obama asked an Iowa crowd if they had seen what Whole Foods -- an upscale supermarket more popular in big cities than in the Corn Belt -- charges for arugula.
(Excerpt) Read more at sg.finance.yahoo.com ...
“Out of touch” with a hey nonny nonny.
Maybe he should have talked about television sets and mp3 players. Still it should be upsetting to anyone that the necessities are getting pricier even if the toys are getting cheaper.
typical elitist rethoric, these libs live in a bubble and have no concern for reality.
REVOLUTION IS A MUST!
Michale Dukakis( troll like pseudo technocrat Governor ) once said the unemployed in the future would work growing organic Belgian endive. He has since his presidential attempt lived off the public teat as a homeless ‘visiting professor’ at various forth rate government colleges and a la Willie Green, at Amtrak.
” “I can’t eat an iPad,” another said. “
Kinda says it all, doesn’t it??
With tone-deaf morons like these running our banking system no wonder we’re in so much trouble. This guy really is drinking the kool-aid.
Drinking it??
He's dishing it out in Super-Size Ben Bernanke Souvenir Cups....
Still it should be upsetting to anyone that the necessities are getting pricier even if the toys are getting cheaper.
////////////////////////////////////////////////////////////
As a “retired” person I enjoy luxuries undreamed of in my youth but I have recently returned to the work force to pay for the necessities of life. In fact I am working two part time jobs. I don’t have the time or money any more to take trips.
I kinda miss Boxcar Willie.
I kinda miss Boxcar Willie.
D'oh!
And no one is buying it. What I meant though is that it really sounds like this Dudley guy sincerely believes what he is saying about inflation, even though everyone else (possibly even the higher ups at the Fed and within the government) know it to be totally false.
Well, he’s got a point. A used Lear Jet, 45’ Sportfish boat prices are way way down. So the money you save on buying a million dollar production sportfish yacht can off set the increase in fresh New England bay scallops.
This administration is totally superfluous. ZeroBama was elected by screeching leftist idiot nonproducers. Wisconsin - the land of Donna Shalayla - is a perfect example. Cheeseheads - take your state back, or ride it down the toilet.
Oh, man. All the super-capitalists here on FR that use that argument every day are, well, looking as foolish as Dudley did...
This story is circumstantial proff of what I’ve said for years here on FR.
The Cheap Food for Consumers Program, most often referred to as The Farm Subsidies Program, was designed to keep food cheap so that politicians don’t have to face angry crowds.
With the advent of burning our feedstuff crops as fuel for our vehicles farmers began recieving a fair price for their produce and opted out of the CHeap Food program.
I wonder how well Dukakis knows Greenspan...
Food, with a profit margin of about 3%, if very sensitive to gas-driven trucks for delivery. The chinese-produced ipad2, with a profit margin of perhaps 50%, is very insensitive to all the fuel needed to deliver it. The ipad2 will be the same price for the next year... but food is going UP.
Just for the fun of it....
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.