We are being robbed and no one seems to notice

I keep looking for someone else to point it out but no one does so I will.

If prices go up unless they fall by the same amount at some stage in the near future, you are forever behind unless your income goes up by the same percent.

Suppose prices go up by 6% and then the inflation rate goes to zero you are forever behind by 6%. Isn’t that clear?

Let me repeat in a slightly different way. If the inflation rate goes to zero you are still that 6% out until your income rises by that same 6%.

Those in government are stealing our wealth and we are apparently too stupid to notice.

No one seems able to distinguish between a level, such as GDP, and a rate, like inflation. We really are a stupid bunch. Even if inflation goes to zero percent we must remain behind.

Promising a return to zero inflation leaves most of us behind.

Higher interest rates make the robbery permanent.

2 thoughts on “We are being robbed and no one seems to notice

  1. Yes, its something of a puzzle in Canada too. And recall in the way the CPI is calculated, if your data download speeds double on your phone, you get bluetooth in your car, and you can do videoconferences the statisticians mark that component of the CPI DOWN. And meanwhile food, clothing and shelter go up …
    I have not thought this through yet, but income is definitely being shifted away from labour to somewhere else – towards capital, but perhaps its the big new COVID/government/health care/capital sector. This sector is making do with existing labour (health care workers) who are getting burned out.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.