Monday, August 03, 2015

63% Inflation, 234% College Inflation

http://mobile.nytimes.com/2015/08/02/opinion/sunday/were-making-life-too-hard-for-millennials.html

Hopefully I can manage to clip a chart from the article at some point and insert it here -- but for now you will have to either believe me or go look at the article. It is the NYTs, they didn't really mean to make the point they made, but here it is:

  • Inflation since '93 is 63% ... so your '93 buck is worth .37 cents. That is what a debtor nation calls LOW inflation! 
  • College costs have gone up 234% since '93! Think about this for a moment. College is HEAVILY state sponsored, HEAVILY regulated, nearly 100% UNIONIZED, 99% DEMOCRAT in administration as well as educators, etc. Do you REALLY want to give the government MORE things to manage???? 
The government is a huge debtor, so it wants LOW INTEREST and HIGH INFLATION ... the number that counts is really the DIFFERENCE between the interest rate and the inflation rate. Inflation seems "low" at "a couple % a year", but the interest rate being paid on savings is actually less than the inflation rate! Just like it was under Jimmuh Carter. 

The difference -- as some of the charts show, is that nobody is making any money because we have no growth. "The problem is the recession" the article says -- the recession supposedly ended in June of 2009! The PROBLEM is that the "recovery" has been "tepid" to say the least -- and if they hadn't fudged the numbers, we would be in a new recession right now! (2 consecutive quarters of negative growth). 

If we had a Republican in the WH the NYTs would be APOCALYPTIC about this economy -- not just feeling a bit sorry for a few "millennials"!

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