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Tuition, health insurance, and deductibles ARE included in CPI. Taxes largely aren't - unless you're talking about sales taxes. Land prices definitely are not.
by onlyrealcuzzo 6y ago
Tuition, health insurance, and deductibles ARE included in CPI. Taxes largely aren't - unless you're talking about sales taxes. Land prices definitely are not. And you are literally doing the opposite of buying something when you save, so that is also (obviously) not included in CPI.
What inflation "feels like" and the CPI are completely different things. This is becoming more problematic if you're on the wrong side of the trade (i.e. saving cash instead of swimming in a mountain of mortgage debt).
- lotsofpulp 6y agoI don’t save in cash, my savings are in various investments such as equity index funds or businesses and real estate. But every year a dollar seems to buy less of what I need, and I can’t imagine how people who earn far less than me can deal with it. If you don’t keep investing, you certainly are falling further and further behind, but how can you invest if you’re just making ends meet as it is.
- Red_Leaves_Flyy 6y ago>I can’t imagine how people who earn far less than me can deal with it Succinctly? [Under/un]treated mental illness due to the maladaptive coping skills needed to survive as a poor American. Poor people make sacrifices to live another day. Whether it's (healthy) food, exercise, healthcare (who can afford insulin or an epipen these days?), or their time. Some people pay the doctors to go to them, others pay for people to do the tediousstuff like cooking or cleaning or laundry or fighting the bank over a $40 overdraft fee that ate that weeks food budget.