2007-09-06 20:13:45 · 3 answers · asked by Elizabeth 1 in Social Science ➔ Economics
The inflation is happening in food and gas and housing prices in selected markets. Most people in the media have high incomes and only spend a small fraction of their income on food and gas so they don't feel the inflation, but the talk about the housing bubble a lot. The government has the same point of view because the government statistics are for averages , and high income people count more in averages. About 70% of households have less than the "average" income.
http://www.visualizingeconomics.com/2006/11/05/2005-us-income-distribution/
2007-09-06 23:24:39 · answer #1 · answered by meg 7 · 0⤊ 0⤋
It's for the same reason why Greenspan created "FedSpeak". In order to not inadvertantly cause panics, they sometimes down play certain facts and elevate others so that the investor classes don't freak out.
The Fed stopped reporting M3 because they thought it to be useless information. The reason being is M3 reports credit expansion/contraction, and overall is not a "reliable indicator" of total inflation. When you add M3 numbers, inflation looks to be as high as 10-14%.
2007-09-07 10:26:14 · answer #2 · answered by Bryan S 2 · 0⤊ 0⤋
Well the inflation in the US isn't that big. Of course it is gradually getting more inflated, but I don't think it's something to be worried about right now.
2007-09-06 20:19:30 · answer #3 · answered by Anonymous · 0⤊ 0⤋