Magical Accounting
You would think that inflation is measured with 'real' values (things like the cost of bread or milk or gas). It is not - today inflation is measured using much more static values that hide the fact that things that real people need to live are rising much faster than many of us can afford. For example, if inflation was measured the way it was in the 1980s, the current inflation rate would be 10%. (As a side note, the measurement of unemployment levels was changed in the 1990s to read much lower than it actually is. If it was measured the way we've measured since the early 1900s, it would be around 16% today not the 10% the government is reporting). We call this magical accounting.
The government wants to change how inflation is measured yet again. Why? Because many benefits (Social Security and Medicare) are tied to inflation. Change the way inflation is measured to something that, on average, will lower the number = less cost of living increases = magical beans cost savings.
The Wall Street Journal explains it here (with a positive spin)
To which I'll counter with the following quote:
"They’re changing rules behind the scenes to make the public metrics look good. The metrics haven’t been totally valid for decades but right now they’re utter poppycock and anyone trying to understand the situation using official numbers will be lost.
Feudalism failed.
Communism failed.
Capitalism failed.
We were never technically a democracy so skip that. The financial capitalist segment beat out all other segments and has now subverted the checks and balances."
[A Dreamwidth post with
comments | Post or read on Dreamwidth| How to use OpenID]
The government wants to change how inflation is measured yet again. Why? Because many benefits (Social Security and Medicare) are tied to inflation. Change the way inflation is measured to something that, on average, will lower the number = less cost of living increases = magical beans cost savings.
The Wall Street Journal explains it here (with a positive spin)
To which I'll counter with the following quote:
"They’re changing rules behind the scenes to make the public metrics look good. The metrics haven’t been totally valid for decades but right now they’re utter poppycock and anyone trying to understand the situation using official numbers will be lost.
Feudalism failed.
Communism failed.
Capitalism failed.
We were never technically a democracy so skip that. The financial capitalist segment beat out all other segments and has now subverted the checks and balances."
[A Dreamwidth post with
comments | Post or read on Dreamwidth| How to use OpenID]