A bit of history for you. In the 1980s, the social security fund was in serious trouble over cost of living increases, which were tied into the system by law.
The solve the impeding shortfalls, the formula for calculating inflation was changed. Energy cost, food, medical and prescribtion drug cost, and many other staples of everyday life were given less weight in the formula. Items that historically drop from year to year, like TVs, computers and other electronics were given more weight in the formula.
Basically, the things you most most of you money on isn't even considered in inflation these days.
Just this week it was announced that people on social security would get the lowest increase in history, 2.1%. This was lauded as a triumph in flation, yet food, gas, heat will all cost more money.
Increases in the cost of these items are now called the declining dollar value.
Call it what you want. It's still inflation.
2007-10-19 12:34:20 · 9 answers · asked by Overt Operative 6 in Politics & Government ➔ Politics
I wonder if a Democrat were persident right now if an entirely different spin would be coming from conservatives about the declining dollar.
2007-10-19 12:35:58 · update #1
I wonder if a Democrat were persident right now if an entirely different spin would be coming from conservatives about the declining dollar.
2007-10-19 12:35:59 · update #2
The raise, which is called a COLA, (cost of living allowance) is anything but. It will be 2.3% but the actual cost of food has increased 4.5% in the past 12 months. Gas prices were over $3.00 per gal back in May before receding a little, but they'll be going back up before the end of the year. Egg prices are up 44%, milk prices 21.3% according to the Bureau of Labor. Wages have increased about 4% but mainly for top earners. As usual, the poor and the elderly get the shaft while those setting the standards in DC have no clue as to what true costs actually are. Core inflation indeed, BS
2007-10-19 13:13:17 · answer #1 · answered by Anonymous · 1⤊ 0⤋
I wonder what the rates would be for the past 6 years if measured by the old way?
it wouldn't be pretty...
and you don't even mention the huge increases in education costs... I noticed a story a month or so ago that said college tuition has went up 40 percent on average.... (I think it was since 2000)
and that has to have an impact...
2007-10-19 12:43:32 · answer #2 · answered by Anonymous · 2⤊ 0⤋
The dollar would not decline through inner kinfolk issues on my own. there are various international locations working mutually to be sure that our forex suffers. look up what Chavez and Ahmadinejad have been doing on the OPEC assembly final week, attempting to alter the valuation of petroleum from US money to Euros. It did no longer take place, yet there and became an attempt. additionally, considering the fact that Bush met with the Dalai Lama and each and all the chinese language made products have been recalled, the chinese language are out to harm our united states interior the process the devaluation of the dollar. Please do no longer over-simplify such huge issues. Bringing all our troops residing house isn't the respond. There are forces vying for predominance that are no longer as benign our united states and its allies.
2016-10-13 05:39:29 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It is always preferrable to assume that infation will increase at a steady rate of 4% or 4.5% per year, regardless of what actually happens. This way, you can plan for your own financial future more securely.
2007-10-19 12:40:52 · answer #4 · answered by Mathsorcerer 7 · 0⤊ 0⤋
We are being screwed by both parties and you are right about the way they figure inflation now. We need a whole new party with viable candidate and clean house from there.
2007-10-19 12:45:12 · answer #5 · answered by Ktcyan 5 · 2⤊ 0⤋
The republicans are nuts if they think the falling dollar is good! I just don't understand why they are out to destroy the American consumer? Baffles me!
2007-10-19 12:43:05 · answer #6 · answered by Anonymous · 3⤊ 0⤋
It helps us sell more products to the worthless Europeans..besides our GDP exceeds the European Union combined...their economies are riddled with muslims and high unemployment...Where would you rather live?
2007-10-19 12:44:03 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Regardless of the party, this drastic drop in the US dollar is very bad in the short and long term.
Some neo-cons twist their lips to claim it helps US exports, as though US consumption doesn't dwarf US exporting.
2007-10-19 12:37:12 · answer #8 · answered by Chi Guy 5 · 3⤊ 3⤋
go for it
2007-10-19 12:39:51 · answer #9 · answered by phillipk_1959 6 · 0⤊ 0⤋