Saturday, February 20, 2010

Consumer Price Index and Inflation

A report that came out this week, http://www.huffingtonpost.com/huff-wires/20100219/us-credit-markets/, stated that the consumer price index rose only 0.2 percent.  This was a smaller increase than expected.  Of course this was after food and energy costs were stripped out.  This always amazes me that the things people rely on are stripped out of the index.  It is my feeling, and I am no economist, that this is very unfair especially as social security increases are based on this as are the pay increases of many folks especially those who work in the public sector such as teachers and municipal and state workers.
I don't know about you folks but the costs of my groceries has gone up and I am just one person.  I can just imagine what it has done to young families with children.  My natural gas from Maine Natural Gas went up by 10% in January and will go up another 12% in December.  I just got a notice from the Portland Water District that they are applying for a rate increase through the Public Utilities Commission.  Time Warner Cable raises their rates whenever they want as they are not controlled by the PUC.  Now I know I can give up cable TV.  Many consider that a luxury but that is my entertainment.  I rarely go out to eat, I don't smoke and drink only 1 glass of wine a day.  The cost of gasoline for the car goes up and down.  The cost of health care keeps going up.  Right here in Maine Anthem/Blue Cross is trying to increase rates by 23%.  How are people to afford these increases when salaries do not keep up.?
It annoys me that these costs are not taken into consideration when Social Security increases are considered. It is disgusting that in this country of wealth and prosperity that we have so many folks going hungry or without medication that could save their lives or without heat to keep them warm.  We are the only industrialized country in the world that does not provide health care for their people. How much of a raise is Congress getting this year. If you have the answer to that question let me know.  Let's try to change some of these things.

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