Name: Anonymous 2008-05-17 4:27
There is an easy way to check whether the Government is lowballing inflation reporting. Look at how much labor is required to buy elements of the American dream then and now. In 1970 it took 48 months to purchase a median home, today it takes 100 months. In 1970 it took one month of work to pay for a year of family healthcare. Today it is 4 to 5 months. In 1970 it took 2 weeks of work to pay for a year of in-state college tuition. Today it takes 3 months.
If the govermnet was telling the truth, then wages would have more or less kept up with inflation. Clearly they have not. If you look at economists (see www.shadowstats.com) who apply the economic yardsticks used in 1980 to today's economy, you will find that we have inflation of 12%, unemployment of 13% and have been in recession through most quarters since 9/11.
When inflation is under reported, wages do not keep up and there is an insidious loss of purchasing power. The Gini index, which measures the destruction of the Middle Class, is at a record high. The last time we even came close to the present level was in 1929.
If the govermnet was telling the truth, then wages would have more or less kept up with inflation. Clearly they have not. If you look at economists (see www.shadowstats.com) who apply the economic yardsticks used in 1980 to today's economy, you will find that we have inflation of 12%, unemployment of 13% and have been in recession through most quarters since 9/11.
When inflation is under reported, wages do not keep up and there is an insidious loss of purchasing power. The Gini index, which measures the destruction of the Middle Class, is at a record high. The last time we even came close to the present level was in 1929.