And Feels so bad for the Rest of Us.
FYI – If you didn’t read part 1 STOP, and click here. It’s important to crawl before you run, so please, indulge me.
You already understand what I mean when I say that we pay inflation on past inflation. Now it’s time to dive into the way they fudge the inflation numbers using a tool called the CPI. The Biden Administration knows that most Americans have no clue how the inflation number is derived. Don’t worry. I’m no expert either, but I’ve done enough research to satisfy my curiosity. Why so curious? Well, I’ve heard that inflation numbers thirty years ago were calculated differently than they are now. I wanted to know why.
Inflation is calculated based on a number called the Consumer Price Index (CPI). Years ago, they calculated the CPI by taking a sample grocery bag of items deemed to be basic consumables for the average American. Then, they calculated the cost. They also came up with criteria for basic housing, transportation, and the list goes on. Let’s stick with the grocery bag sample for this illustration.
The next year they looked at the exact same bag of groceries and determined the current cost. The difference in price was the CPI, and they used that CPI to determine the inflation rate. Every once in a while the CPI would go down, which means low or negative inflation, but most of the time, it went up.
So how does someone fiddle around with something as straightforward and basic as the cost of groceries? Well, it works like this. The Biden Administration Muckety-Mucks said wait a minute. We aren’t taking into account consumer spending trends. If the price of Swiss Cheese goes up, shoppers start buying Provolone cheese which is cheaper. We need to adjust for that. We also need to adjust for Rye Bread to White Bread and so on, and so forth.
On the surface it makes sense, right?
Yeah, just like every other democrat lie. It sounds reasonable until you dive into the specifics.
Let’s stick with bread. For years you purchased Rye Bread to make the sandwiches you and your family enjoy for lunch. In the past, you paid $2 a loaf. Now it’s $5 a loaf. So you tell your kids, and yourself, White Bread is just as good. But is it? And what happens when White Bread becomes too expensive? Are Crackers just as good? Imagine the look on our kid’s faces when you give them a sandwich made with two crackers instead of two slices of bread. And it doesn’t stop there.
When calculating the current CPI, they do the same tomfoolery for just about everything, including housing costs. They completely ignore homeowners and the costs of buying, financing, and maintaining a home in good livable condition. Instead, they use average rents to set the standard cost of housing, and they justify it by claiming your home isn’t an expense, it’s an investment.
And the Muckety-Mucks aren’t through; they’re still manipulating the numbers even today. This is why the Biden Administration and the fake news media can tell you to your face, that you’re only experiencing an 8.2% inflation rate when in reality, it’s an inflation rate of 18-20%.
But there’s good news ahead. Mark my words. When Donald J. Trump ascends to his rightful place in the Whitehouse, you can bet your bottom dollar that the CPI, along with the inflation rate, employment rate, and everything else, will all be recalculated the right way (meaning applicable to those on the right). Then, the democrats, supported by the fake media, will complain for months about how the inflation rate spontaneously jumped to double digits as soon as Joe (LGB) Biden left office.
You heard it here first.
Democrats also feel the pain, but they feel it differently. To them, it’s almost masochistic in nature because it’s the pain of change in America; from a capitalist abomination full of deplorable individualists providing for themselves; to a Socialist Utopia full of mind-numbed robots willing to be subjugated for mere sustenance (otherwise known as Communism).
PS – For all you independent voters out there: We stand at the precipice, vote your mind, not your heart or it’ll cost you more than money.
For a more detailed discussion of what I just told you, see: Why Has the Inflation Calculation Changed Over Time? – DNyuz It’s not overly biased, but be careful just the same. The government Muckety-Mucks substitute the word consumption for the concept of same standards of living. The bias is subtle, but it’s there.