Some thoughts on The Rising Cost of Living

Submitted by carol white on Tue, 07/22/2008 - 10:44

This thread is really linked to Cho's commentary below.

A friend who reads the economic blogs pointed out the following commentary to me. It is on a topic that is close to home, Why a lot of people think the CPI is not representative of their experience ... and are right. At least partly.

The raises following question about how the index should be calculated. In one "democratic" version, the expenditure pattern of every household is lumped together. In the other "plutocratic" one, the calculation is weighted by the number of dollars spent. Thus the expenditure of the rich on luxury items would be a greater percentage of their income than the expenditures of us poor folk. The first case is one household one vote, the second one dollar one vote.

I have no idea how the cost of living index computed is by the feds but I do know that leaving out food and fuel costs from the so-called core index is simply a lie which "conveniently" serves to depress the rise in the cost-of-living index on which social security benefits are calculated (just one example I am familiar with.)

I recommend reading the post. My thought is that the weight of price rises hits a families "pocket book" quite differently depending on their circumstances. The less the income the more significant changes in food and fuel and home heating prices are, and so forth. I don't know how health care costs are computed.

Let's take social security cost-of-living increases. IMO they should be calculated separately for seniors living in the lowest income class, middle and higher income classes (perhaps with a weight also given to assets.) For people who primarily depend on social security and perhaps an additional pension the burden of non-core index price rises is obviously greater than for the retirees like say Alan Greenspan.

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My Little Town

Submitted by DEFuning on Tue, 07/22/2008 - 17:10.

The Cost of Living is definitely regressive. The sick, the elderly, the unemployed--are being hammered. Welcome to the New Depression.

We just got flooded with 6,000 people being laid off by Wachovia. I just applied to a job and was one of 350 applicants! These are extraordinary times. Our roads are never crowded anymore, the malls are empty, restaurants are all doing special deals because they are also empty. I now can make beans in 973 ways--all of which make my family at risk for getting a home visit by Al Gore for the Greenhouse Gas pollution we are generating. Protein? Fruit? Vegetables? Not so much. Too expensive.

Then there are the hidden costs not accounted for in any formula. I just came from a meeting of a coalition of groups who advocate for housing for the disabled and the waiting list is now over three YEARS. Sometimes they get themselves arrested just to have someplace to go and get cool. It is 100 degrees today and a Code Orange--meaning the air is as about as breathable here as it is on Venus. It is a good day to get locked up--it is cool in there.

And then you have clueless disasters like the mayor of San Francisco who ordered that no one may sleep in their cars anymore. The very clueless mayor of Charlotte wants the homeless to be fed by the good charitable folks in the community --only he wants them to be fed somewhere else (location not determined). What will be the cost of that to society?

Our economy, although it is still one of the most resilient in the nation, is showing the strain. Consequently ,our crime rate is surging. Do those costs get measured in the cost of living? Hardly, but they should be to get an accurate measure.

Health care costs? I can tell you that for many of us , the cost is ZERO because we don't even go anymore. The ER costs however are skyrocketing and are skewing the figures in many communities.

These are extraordinary times.

You know I have a new book on the depression

Submitted by carol white on Tue, 07/22/2008 - 17:42.

"American Made," about the WPA. And even though I am a great FDR fan I can't sit down and read it. I just get too damned upset.

Take care. I wish we epmers like you, Cho and us were all within neighborly reach when I hear stories like yours.

—

carol

We are...

Submitted by cho on Tue, 07/22/2008 - 20:45.

can I share my brine pickle recipe with you?

My tomatoes will be coming in soon too. Now, we eat those all year long. My trick is I wash them and then toss them whole onto a cookie sheet and throw them in the freezer. Once my billard balls are frozen solid, I freezer bag them.

We thaw them out to put in pasta, salads, soups all winter long and even through the summer until the new crop comes in.

Though he's threatened to for three summers, Luaptifer has yet to come down to our side of the Mass / CT border to sample my salsa.

:-)

I am thinking it's just beginning

Submitted by cho on Tue, 07/22/2008 - 16:08.

to trinkle down and settle in.

Some odd observations.

  • A weekend trip to Newport was a piece of cake, no long lines over the bridge, the "downtown" stripe was uncrowded. Not many cars.
  • One Senior Citizen we know started riding a mountain bike; another bought a motorscooter.
  • Several of us in town have turned off our furnaces
  • 23 homes are in foreclosures, preforeclosure, bankruptcy or have tax leins.