September 30, 2012

CHANGE: When it costs more to be poor – Fed and government shifting inflation onto rent, medical care, and food. QE3 to widen the gap between the poor and the wealthy. “Inflation has been picking up since the recession ended in 2009. The problem with the CPI increasing year over year with no rise in household incomes is that the standard of living for most Americans erodes every year that incomes do not keep up. Household incomes are back to levels last seen in the mid-1990s while the cost of necessities has gone up. . . . Even a one percent rate of inflation is troubling if incomes are stagnant or falling. Since the recession has ended inflation has occurred even as measured by the CPI. Over this same timeframe, household incomes have remained stagnant and household net worth has fallen close to 40 percent. Yet there is something more troubling in the actual data. The inflation rate is actually being understated because Americans have shifted consumption from non-essential goods to actually seeing inflation in things that they actually need.”