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What is inflation?  Economists have a very technical definition based upon the amount of money in circulation.  To the average individual, it means the increase in the cost of living.

As usual, the economists have their heads in the clouds; so this discussion will use the individuals’ definition.

Every month the Federal Government releases the inflation number.  This number is wrong.  Why?  The basket of goods the government uses is incorrect; it is not the same basket of goods the average consumer buys each month.  Also the government includes a quality/feature factor to reduce the amount of the price increase.

Everyone knows that costs are rising much faster than the inflation number released by the government.

So what are recipients of social security and other fixed income amounts to do when the cost of increase amount is much less than inflation?

What is the government doing about this?





Written by solutions777

July 13, 2011 at 7:29 pm

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