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The short answer is that no your not crazy. Your seeing several factors at work.
1). Energy prices have jumped up inflation in a major way, from the cost of transportation items to the costs of actually growing food items. It even gets more hairy when you factor in things like the pretty inefficient ethanol fuel source which is subsidized by the government which in turn has helped run up the price of corn etc. Ow and energy prices aren't used in inflation calculations because of their volatility.
2). The government does not accurately report inflation. They manipulate it through a variety of methods and its happened throughout both parties being in control. An example is the basket of goods, this started actually under Clinton and Greenspan. Previously inflation was measured by saying a family would buy an a steak and that steak purchase was tracked through time to measure inflation. The argument was made though that a family would substitute hamburger if the steak became too expensive.
So the calculations were changed to reflect this and it helped cover up the fact inflation that was occurring. Instead of showing us true inflation it shows the cost of maintaining a decline in standard of living.
Another nice ploy is adding crap like Ipods to the basket. Lets say in year 1 a 300.00 Ipod held 100 songs and in year 5 it held 1000 songs for 300.00. That is taken into account as a DECREASE in inflation, the same is done for Flat Panel TVs, computers etc.
The problem with all this bullshit is that Senior citizens living on a fixed income of Social Security are getting their increases decided on crap like Ipods costs.
3). Too much easy to get goddamn credit. The Fed can't print the money fast enough. You see inflation caused by workers actually getting pay increases = BAD. Inflation caused by Americans borrowing out of their ass = GOOD. Now we all think this gravy train has to stop soon, the dollar is declining so rates need to come up but wait and see you will be surprised how creative the banking industry can get.. 50 year mortgages maybe? Not only does this put people in debt but it kills savers.
4). Health care increases are insane. My monthly health care premiums have gone up 352% in since 2000. Why is this happening? Well companies purchasing insurance coverage for the employees and retirees are now seeing that most of their people covered are starting to be retirees.. ooppps guess they didn't think about that 20 years ago. Now if companies were actually HIRING young people some of this would be evened out instead they staff aug with India etc. The end result is there are less and less 'healthy people' to help average out the costs. I really don't know what people my age(30) are going to do for insurance, my kids who knows what they will have.
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