There’s No Inflation; Things Just Cost More
4:16 PM, Jun 27, 2014 • By GEOFFREY NORMAN
There has been a long stagnation following the “Great Recession.” No good news there. Lots of unemployment, hence no competition for labor and, thus, no increase in incomes. But … at least there is no inflation. That, anyway, is what we are told by the engineers with their handles on the economy’s throttles. The Federal Reserve, in fact, would like to see some more inflation.
Well, maybe they have been looking in all the wrong places. As Ben Steverman of Bloomberg reports:
Meanwhile, in the real world:
Among the things that have gotten more expensive:
These things, it should be pointed out, do not fall under the heading of “discretionary spending.”
So while the official number, the Consumer Price Index is:
So, incentives being what they are, the smart play is to not buy a home or start a family.
The new American dream.
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