It is interesting that we are getting more purchasing power in everything except what we need. Of course it's those things that have the most regulation around them so they get more expensive while everything else gets cheaper.
I can guarantee that what she says is absolutely false. She believes it because the guverment's stats say it but they are using faked inflation data that changes the picture dramatically.
I couldn't find more recent data but rest assured that the difference has grown MUCH wider. Basically, the guverment changes what's part of their calculation for inflation in order to make itself look better, such as: "Oh the price of steak has increased so much this year, let's substitute hamburger in the calculation, they're both red meat, right?"
But the idea of calculating inflation in the first place is how much the price of A SET OF GOODS changes over time. The guverment has been changing the posited average consumption to suit its needs.
So it all depends on what CPI bucket you choose. That how the government cheated there stats. Which is almost saying the same thing I said. It depends on what segment of the market you are looking at. It would be interesting to see what's weighted in one bucket vs the other. The lower graph probably has more housing, medicine, education. The top one probably has more watches, household goods, and staple foods.
It's not so much "which bucket" but the fact that the guverment keeps on changing the bucket's composition from year to year in order to consistently under-report inflation.
As such, the reported "6-figure income" means a lot less than it looks like it does.
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That's what happens when you use the guverment's stats to tell you how much purchasing power you have.
It is interesting that we are getting more purchasing power in everything except what we need. Of course it's those things that have the most regulation around them so they get more expensive while everything else gets cheaper.
I can guarantee that what she says is absolutely false. She believes it because the guverment's stats say it but they are using faked inflation data that changes the picture dramatically.
See here: https://www.shadowstats.com/imgs/2013/834/image006.jpg
I couldn't find more recent data but rest assured that the difference has grown MUCH wider. Basically, the guverment changes what's part of their calculation for inflation in order to make itself look better, such as: "Oh the price of steak has increased so much this year, let's substitute hamburger in the calculation, they're both red meat, right?"
But the idea of calculating inflation in the first place is how much the price of A SET OF GOODS changes over time. The guverment has been changing the posited average consumption to suit its needs.
So it all depends on what CPI bucket you choose. That how the government cheated there stats. Which is almost saying the same thing I said. It depends on what segment of the market you are looking at. It would be interesting to see what's weighted in one bucket vs the other. The lower graph probably has more housing, medicine, education. The top one probably has more watches, household goods, and staple foods.
It's not so much "which bucket" but the fact that the guverment keeps on changing the bucket's composition from year to year in order to consistently under-report inflation.
As such, the reported "6-figure income" means a lot less than it looks like it does.