For Consumers The Real Inflation Rate Means Getting By with 50 Percent Less




For Consumers The Real Inflation Rate Means Getting By with 50 Percent Less
Photo Credit: CenterBlog

In my article The Shrinking Toilet Paper Mystery and the Fake Inflation Report, I reported that the true inflation rate is much higher than reported because manufacturers have been surreptitiously masking the increase in the selling price of their products by making those products smaller, fewer, shorter, thinner, narrower, lighter, or making the packaging puffier while keeping the retail price the same as the previous year.

The consequence is that while weekly wages have seemingly kept up with inflation, the true increase in the cost of living has outpaced our ability to buy the same amount of weekly goods in real weight and real count.

Now comes Obamacare with its catastrophically high premiums (1). Because health insurance premiums paid by employers are considered part of a worker's compensation, the Bureau of Labor Statistics does not include such expenditures in the Consumer Price Index. One way or another, workers will be paying for those premium increases and so will have even less money to buy even smaller, thinner, shorter, etc. products.

We are in for some tough times.




ENDNOTES


(1):

townhall.com, 22 Nov 2013, Democratic Staffers: Whoa, Our Rising Healthcare Costs Are 'Unacceptable'

Veteran House Democratic aides are sick over the insurance prices they’ll pay under Obamacare, and they’re scrambling to find a cure. “In a shock to the system, the older staff in my office (folks over 59) have now found out their personal health insurance costs (even with the government contribution) have gone up 3-4 times what they were paying before,” Minh Ta, chief of staff to Rep. Gwen Moore (D-Wis.), wrote to fellow Democratic chiefs of staff in an email message obtained by POLITICO. “Simply unacceptable.” In the email, Ta noted that older congressional staffs may leave their jobs because of the change to their health insurance. Under the Affordable Care Act, and federal regulations, many congressional staffers — designated as “official” aides — were forced to move out of the old heavily subsidized Federal Employees Health Benefits program and into the District of Columbia’s health insurance marketplace exchange.



### End of my article ###

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