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Inflation has been here for a while, house prices have exploded, education and healthcare are unaffordable too. Sure TVs, cars and clothes have reduced in price
by x87678r 6y ago
Inflation has been here for a while, house prices have exploded, education and healthcare are unaffordable too. Sure TVs, cars and clothes have reduced in price so now they really make a tiny impact on your budget. The real problem is CPI isn't reflecting the real world.
- skybrian 6y agoThe CPI reflects what people actually pay for and a lot of people manage not to pay current prices. Many people bought a house a long time ago so their cost is lower. Also many people went to college a long time ago and aren’t spending anything on it now. Also, many people are healthy, and if they’re not insured then they’re not paying for healthcare. This is about real people in the real world, it’s just not necessarily current prices, and it’s an average. The average experience isn’t going to be all that relevant to you if you do need to pay current prices.
- x87678r 6y agoThat's true, CPI is high for young people, CPI is low for boomers.
- lenitabinol 6y agoThis is the right answer. Inflation metrics as reported by the Fed are entirely disconnected from what the average consumer is actually facing. Higher education, housing, and healthcare costs are the biggest expenses one faces in their life and the Fed ignores these to justify money creation. Fortunately for the 1%, that money is used to buy assets mostly owned by them.