Inflation 2011: Honey – They Shrunk Our Paychecks
Do you ever have the feeling that there are holes in your pockets? These days our money seems to slip through our hands faster than ever. The Federal Reserve keeps telling us that the rate of inflation in 2011 is “close to zero”, and this is causing confusion for many Americans because they are making just as much money as they did in previous years but it doesn’t seem to go nearly as far. So what in the world is going on out there? Well, sadly, the truth is that we really don’t even know what the government considers “inflation” to be anymore. The way that the U.S. government calculates inflation has changed an astounding 24 times since 1978. You see, it is always politically beneficial to have a low inflation rate, so recent administrations have been changing the formula constantly in an attempt to look good. But these days most Americans know something is up. All they have to do is stop at a gas station, go shopping for food or open up their bills. The reality is that inflation in 2011 is about as bad as we saw back in the 1970s, it is just that the government is much less honest about it now.
Many years ago Kenny Rogers released a song that contained the following lyrics….
You got to know when to hold em, know when to fold em
Know when to walk away and know when to run
You never count your money when you’re sitting at the table
There’ll be time for counting when the dealer’s done
Well, the U.S. middle class has been dealt a losing hand, but in the game of life you just can’t fold.