First, the nitwits at the Associated Press published an article making this ridiculous, ignorant claim (see: Key Inflation Measure Jumped 6.6 Percent in March, Hit 40-Year-High):
And despite soaring prices, consumer spending rose faster than inflation for a third consecutive month, suggesting that rising prices haven’t cooled the desire of Americans to shop.
Cash is trash. Rightly, Americans, other U.S. citizens and USA residents are quick to unload their dollars as fast as they can. Hence, consumer spending is outpacing inflation. If a dollar is on pace to lose 15 cents of its buying power (actual) or 8.5 cents of its buying power (government propaganda), then rightly everyone intelligent will try to buy real goods right now to ditch their increasingly weaker dollars.
Then and Now: 22 Years of Inflation
Back in 2000, I held a job that paid me $67,000 a year. I was much younger at the time and quite immature. To a guy with no dependents and no responsibilities, $67,000 a year seemed good enough to pay the bills of partying.
Now, the minions at the Bureau of Labor Statistics, the people who bring you the Consumer Price Index (CPI) use what they call hedonic quality adjustments to account for perceived changes in the quality of finished goods over time. Doing that is an error, of course. Yet, they do so to reduce the true effects of rising prices.
The BLS minions claim they need to do this to create apples to apples comparisons. Yet, what they do fails to achieve this.
Consider that BLS minions never adjust prices upward of things produced under greater efficiency today, to match the lesser efficiency of the past. The only goal for the BLS as government propagandists is to hide the effects of inflation, i.e., ever expanding negotiable bank credit of a banking system built on irredeemable bank note currency.
Anyway, on a lark, I devised some deflators based on items that I consumed back in 2000 and which even today, I might consume. So at $67,000 in 2000, I earned $32.21 an hour.
Gab It
