Hey, leftist trolls, inflation IS A TAX!

[8537]

And totally inaccurate.

How did you arrive at the conclusion that it's "totally inaccurate"? What part of the methodology do you find lacking?

Over the years, the methodology used to calculate the CPI has also undergone numerous revisions. According to the BLS, the changes removed biases that caused the CPI to overstate the inflation rate.

Indeed, a natural substitution effect causes the CPI to overestimate the value of the basket of goods.

The new methodology takes into account changes in the quality of goods and substitution. Substitution, the change in purchases by consumers in response to price changes, changes the relative weighting of the goods in the basket. The overall result tends to be a lower CPI. However, critics view the methodological changes and the switch from a COGI to a COLI focus as a purposeful manipulation that allows the U.S. government to report a lower CPI.

So tell me, NOLA - Would you prefer a steady basket of goods so that we're still weighting home phone service at the same basis we did in 1991? Or did you just find the first link you could when googling "CPI"?

If the BLS reports inflation at 3%, you can bet it is probably closer to 10%.

No. Even those that believe they undercompensate for technology and substitution agree that the impact is relatively small - an amount equal to a point or two at the absolute most.

But congrats - you had an uneducated bias and you found a link to confirm it!

 

[Uncensored2008]

You want to tax more, but you don't even realize that inflation is a tax. If the economy only had 1 dollar and the fed printed 100 more dollars...GUESS WHAT? Your dollar is worth less! It's a hidden tax. They are stealing from you...why do you support such tyranny?

And a regressive tax at that,

 

[8537]

You want to tax more, but you don't even realize that inflation is a tax. If the economy only had 1 dollar and the fed printed 100 more dollars...GUESS WHAT? Your dollar is worth less! It's a hidden tax. They are stealing from you...why do you support such tyranny?

And a regressive tax at that,

regressive? How is a tax that rewards spending and penalizes savings regressive in light of the fact that those with higher incomes save a higher percentage?

 

[bripat9643]

Well then it's a darn good thing inflation is so low.

It takes about 2 years before increases in the money supply translate into inflation.

 

[bripat9643]

You want to tax more, but you don't even realize that inflation is a tax. If the economy only had 1 dollar and the fed printed 100 more dollars...GUESS WHAT? Your dollar is worth less! It's a hidden tax. They are stealing from you...why do you support such tyranny?

And a regressive tax at that,

regressive? How is a tax that rewards spending and penalizes savings regressive in light of the fact that those with higher incomes save a higher percentage?

When inflation is high, wealthy people put their money into hard assets such as real estate. They don't leave it sitting in a checking account.

Inflation penalizes poor people the most, and it especially penalizes retired people.

 

[editec]

Money supply?

Here's the numbers from about 200 to date

......................M1: M2:

Jan 1990 795.4 3170.6 800.7 3174.4
Feb 1990 798.1 3183.0 786.7 3174.4
Mar 1990 801.6 3193.9 794.5 3196.4
Apr 1990 806.2 3205.4 816.2 3223.5
May 1990 804.2 3204.2 795.5 3190.1
Jun 1990 808.9 3217.0 809.0 3213.8
Jul 1990 810.1 3227.4 811.0 3227.4
Aug 1990 815.7 3245.0 812.7 3241.6
Sep 1990 820.1 3257.6 817.1 3252.0
Oct 1990 819.8 3262.3 816.1 3256.7
Nov 1990 822.1 3265.7 824.6 3268.4
Dec 1990 824.7 3274.8 842.7 3288.2
Jan 1991 827.1 3290.7 831.7 3292.3
Feb 1991 832.7 3307.5 822.1 3299.2
Mar 1991 838.8 3324.8 833.7 3330.2
Apr 1991 843.1 3335.5 851.9 3352.7
May 1991 848.8 3346.1 840.3 3333.4
Jun 1991 856.7 3355.1 856.7 3352.7
Jul 1991 861.5 3358.9 860.9 3357.2
Aug 1991 866.7 3357.7 863.2 3354.0
Sep 1991 869.6 3357.5 865.4 3350.2
Oct 1991 878.0 3362.6 874.0 3356.3
Nov 1991 887.6 3368.1 892.3 3373.7
Dec 1991 897.0 3374.8 915.6 3389.1
Jan 1992 910.4 3383.5 916.4 3385.6
Feb 1992 925.3 3402.5 915.1 3392.4
Mar 1992 936.7 3406.2 929.6 3407.2
Apr 1992 943.8 3402.0 953.7 3421.4
May 1992 950.5 3400.7 942.9 3390.2
Jun 1992 954.3 3395.6 951.0 3390.8
Jul 1992 963.2 3395.8 962.0 3395.2
Aug 1992 973.7 3400.8 970.1 3398.5
Sep 1992 988.1 3412.5 982.7 3403.2
Oct 1992 1003.8 3426.0 1000.8 3420.8
Nov 1992 1015.7 3428.5 1021.4 3435.4
Dec 1992 1024.9 3427.1 1045.6 3443.8
Jan 1993 1030.4 3421.5 1039.8 3426.1
Feb 1993 1033.5 3417.3 1021.9 3403.2
Mar 1993 1038.6 3414.6 1030.5 3413.0
Apr 1993 1047.6 3413.8 1057.4 3432.8
May 1993 1065.9 3439.1 1056.8 3427.5
Jun 1993 1075.1 3445.1 1071.8 3442.1
Jul 1993 1084.5 3444.5 1083.1 3445.2
Aug 1993 1094.2 3448.3 1088.1 3443.6
Sep 1993 1104.2 3454.9 1098.8 3446.2
Oct 1993 1113.0 3459.2 1111.6 3455.2
Nov 1993 1124.2 3472.7 1129.0 3477.3
Dec 1993 1129.6 3477.3 1153.3 3498.0
Jan 1994 1131.6 3477.7 1141.7 3483.0
Feb 1994 1136.3 3478.6 1123.8 3462.4
Mar 1994 1140.2 3483.9 1131.1 3480.8
Apr 1994 1141.1 3487.1 1152.2 3508.9
May 1994 1143.3 3496.5 1132.0 3480.4
Jun 1994 1145.1 3485.1 1141.8 3483.0
Jul 1994 1150.6 3493.7 1150.9 3497.0
Aug 1994 1150.6 3490.8 1144.1 3486.8
Sep 1994 1151.9 3491.0 1146.4 3481.7
Oct 1994 1150.1 3489.4 1147.9 3483.2
Nov 1994 1151.0 3492.5 1156.2 3497.0
Dec 1994 1150.6 3491.4 1174.5 3512.9
Jan 1995 1151.4 3496.8 1159.5 3499.8
Feb 1995 1147.4 3494.1 1135.3 3479.0
Mar 1995 1146.7 3495.3 1139.3 3495.8
Apr 1995 1149.3 3503.2 1160.3 3526.4
May 1995 1145.4 3528.1 1133.9 3510.6
Jun 1995 1144.2 3553.4 1141.0 3549.9
Jul 1995 1145.4 3571.9 1145.7 3574.2
Aug 1995 1145.5 3593.8 1139.3 3589.9
Sep 1995 1141.9 3606.9 1138.4 3599.4
Oct 1995 1137.3 3617.9 1132.9 3606.7
Nov 1995 1134.0 3624.7 1138.6 3627.8
Dec 1995 1127.5 3634.3 1152.7 3658.1
Jan 1996 1123.5 3652.4 1130.2 3656.1
Feb 1996 1118.4 3666.4 1105.8 3652.1
Mar 1996 1122.5 3692.2 1118.0 3699.2
Apr 1996 1124.8 3702.9 1131.8 3725.8
May 1996 1116.6 3713.8 1105.9 3694.5
Jun 1996 1115.1 3727.4 1115.0 3725.7
Jul 1996 1112.5 3742.2 1110.7 3739.1
Aug 1996 1101.6 3749.2 1097.7 3746.7
Sep 1996 1096.1 3757.8 1091.7 3748.6
Oct 1996 1086.2 3774.4 1078.4 3758.7
Nov 1996 1083.2 3791.9 1087.4 3794.7
Dec 1996 1081.5 3814.5 1105.8 3835.5
Jan 1997 1081.3 3829.7 1087.9 3834.5
Feb 1997 1078.8 3840.6 1066.8 3829.6
Mar 1997 1072.1 3854.7 1069.2 3867.8
Apr 1997 1064.0 3872.0 1074.5 3900.3
May 1997 1064.0 3884.2 1054.7 3864.0
Jun 1997 1065.7 3899.2 1064.8 3894.0
Jul 1997 1066.3 3921.1 1065.8 3912.7
Aug 1997 1074.2 3949.3 1069.1 3947.6
Sep 1997 1067.7 3969.6 1059.5 3956.0
Oct 1997 1065.5 3986.2 1057.6 3971.3
Nov 1997 1070.1 4007.5 1074.1 4010.7
Dec 1997 1072.8 4029.1 1097.5 4050.3
Jan 1998 1074.3 4051.9 1080.2 4058.3
Feb 1998 1077.9 4083.0 1066.2 4074.8
Mar 1998 1077.2 4108.0 1075.9 4123.9
Apr 1998 1076.7 4132.0 1087.7 4166.3
May 1998 1078.1 4153.8 1070.8 4136.1
Jun 1998 1076.8 4179.5 1075.2 4167.2
Jul 1998 1075.1 4196.1 1074.2 4185.2
Aug 1998 1075.2 4219.1 1069.3 4212.8
Sep 1998 1080.4 4262.0 1070.6 4247.2
Oct 1998 1085.9 4300.3 1077.4 4283.8
Nov 1998 1094.4 4336.9 1098.0 4338.2
Dec 1998 1095.8 4370.2 1121.2 4392.2
Jan 1999 1097.4 4391.0 1103.9 4402.1
Feb 1999 1097.0 4417.6 1085.2 4411.9
Mar 1999 1097.7 4428.9 1097.5 4449.9
Apr 1999 1101.8 4456.3 1113.6 4495.7
May 1999 1102.8 4474.6 1096.4 4455.8
Jun 1999 1099.8 4498.9 1098.2 4484.0
Jul 1999 1098.8 4523.8 1097.2 4508.7
Aug 1999 1099.0 4543.7 1092.8 4530.4
Sep 1999 1097.1 4559.4 1086.2 4543.6
Oct 1999 1102.1 4577.9 1095.1 4564.8
Nov 1999 1111.3 4604.4 1113.0 4601.5
Dec 1999 1122.4 4629.4 1148.2 4656.5
Jan 2000 1121.9 4655.2 1126.9 4665.5
Feb 2000 1109.0 4671.7 1097.4 4665.4
Mar 2000 1108.1 4701.2 1108.9 4726.9
Apr 2000 1113.8 4751.5 1125.7 4795.8
May 2000 1105.8 4745.7 1100.4 4721.3
Jun 2000 1103.2 4760.8 1101.8 4744.5
Jul 2000 1103.6 4774.5 1102.8 4761.2
Aug 2000 1100.8 4809.1 1094.5 4792.5
Sep 2000 1099.6 4839.8 1088.8 4827.4
Oct 2000 1098.4 4858.0 1092.2 4841.4
Nov 2000 1092.4 4869.4 1092.1 4869.7
Dec 2000 1087.2 4910.4 1111.7 4942.7
Jan 2001 1097.2 4965.8 1100.4 4968.6
Feb 2001 1101.3 5002.8 1089.8 4997.8
Mar 2001 1109.7 5062.4 1111.2 5089.0
Apr 2001 1115.0 5123.2 1126.8 5164.6
May 2001 1119.6 5126.9 1114.7 5101.1
Jun 2001 1126.7 5165.6 1126.4 5152.5
Jul 2001 1140.0 5198.4 1139.8 5182.2
Aug 2001 1150.1 5230.2 1144.6 5218.2
Sep 2001 1205.0 5338.7 1193.7 5329.5
Oct 2001 1165.8 5331.2 1159.2 5312.7
Nov 2001 1170.8 5374.6 1168.9 5376.7
Dec 2001 1182.1 5423.9 1208.3 5459.2
Jan 2002 1190.3 5454.3 1191.0 5448.8
Feb 2002 1190.4 5481.2 1177.7 5468.8
Mar 2002 1192.6 5488.3 1196.4 5517.6
Apr 2002 1185.5 5493.8 1196.5 5529.2
May 2002 1189.1 5516.2 1185.6 5494.5
Jun 2002 1193.0 5538.6 1194.3 5531.8
Jul 2002 1200.3 5587.3 1199.8 5572.7
Aug 2002 1186.4 5624.4 1181.8 5615.3
Sep 2002 1195.7 5647.5 1185.4 5640.1
Oct 2002 1203.9 5700.1 1196.2 5679.1
Nov 2002 1208.5 5743.5 1204.9 5751.9
Dec 2002 1219.7 5769.3 1245.1 5801.1
Jan 2003 1226.0 5798.5 1224.9 5788.8
Feb 2003 1238.2 5833.8 1225.0 5814.0
Mar 2003 1239.0 5848.1 1244.5 5873.9
Apr 2003 1248.1 5892.5 1259.0 5929.3
May 2003 1268.0 5947.5 1266.0 5927.9
Jun 2003 1281.0 5985.5 1284.1 5983.0
Jul 2003 1288.8 6040.7 1287.3 6026.0
Aug 2003 1294.3 6084.1 1291.7 6082.5
Sep 2003 1297.7 6065.7 1285.8 6052.3
Oct 2003 1297.1 6053.4 1288.3 6036.3
Nov 2003 1297.6 6052.9 1293.3 6065.3
Dec 2003 1306.5 6059.9 1332.0 6088.6
Jan 2004 1305.0 6064.9 1301.3 6049.3
Feb 2004 1321.1 6102.4 1306.2 6079.5
Mar 2004 1329.6 6141.3 1337.4 6157.4
Apr 2004 1331.0 6184.5 1342.7 6226.5
May 2004 1331.5 6250.5 1333.0 6239.0
Jun 2004 1343.2 6263.1 1347.2 6260.9
Jul 2004 1341.0 6272.5 1338.4 6265.3
Aug 2004 1353.2 6294.1 1352.1 6286.3
Sep 2004 1362.6 6332.1 1348.7 6320.0
Oct 2004 1360.6 6353.8 1350.9 6341.2
Nov 2004 1374.9 6390.8 1370.6 6391.2
Dec 2004 1376.4 6406.2 1401.0 6434.2
Jan 2005 1366.0 6405.7 1361.1 6391.3
Feb 2005 1371.9 6420.9 1354.6 6391.4
Mar 2005 1372.0 6434.7 1381.4 6452.2
Apr 2005 1356.6 6443.0 1368.9 6496.6
May 2005 1364.4 6458.3 1369.0 6445.7
Jun 2005 1379.7 6495.5 1383.9 6498.6
Jul 2005 1367.2 6520.8 1364.9 6518.6
Aug 2005 1376.6 6554.1 1376.4 6541.8
Sep 2005 1378.2 6591.1 1363.0 6574.5
Oct 2005 1375.2 6620.6 1364.7 6601.6
Nov 2005 1376.3 6645.9 1372.8 6642.7
Dec 2005 1374.9 6672.7 1396.4 6696.6
Jan 2006 1380.0 6712.5 1374.7 6694.2
Feb 2006 1379.2 6739.0 1361.3 6710.9
Mar 2006 1382.9 6751.1 1394.0 6784.5
Apr 2006 1379.6 6783.7 1392.9 6847.8
May 2006 1385.4 6796.8 1391.4 6785.6
Jun 2006 1373.4 6833.3 1378.3 6837.8
Jul 2006 1370.4 6868.0 1367.7 6859.6
Aug 2006 1370.2 6899.5 1369.6 6878.7
Sep 2006 1362.6 6926.0 1346.4 6907.0
Oct 2006 1369.3 6983.0 1359.2 6951.4
Nov 2006 1370.9 7022.6 1367.4 7015.5
Dec 2006 1366.3 7064.5 1386.5 7092.7
Jan 2007 1373.2 7103.9 1367.8 7089.9
Feb 2007 1363.9 7122.1 1346.3 7100.4
Mar 2007 1366.4 7151.9 1377.9 7199.9
Apr 2007 1377.5 7220.7 1391.9 7289.8
May 2007 1379.2 7244.3 1385.1 7233.3
Jun 2007 1364.9 7268.8 1370.3 7277.9
Jul 2007 1370.7 7304.0 1368.2 7282.7
Aug 2007 1373.0 7368.8 1371.8 7344.6
Sep 2007 1373.4 7400.8 1355.6 7374.3
Oct 2007 1378.8 7431.4 1368.1 7389.4
Nov 2007 1371.2 7461.9 1368.9 7450.2
Dec 2007 1373.6 7493.1 1393.2 7520.2
Jan 2008 1380.1 7527.3 1374.3 7518.9
Feb 2008 1381.0 7616.0 1364.2 7603.0
Mar 2008 1386.7 7673.8 1399.4 7742.3
Apr 2008 1389.9 7723.1 1405.0 7791.6
May 2008 1389.6 7731.5 1395.0 7730.4
Jun 2008 1399.0 7743.6 1405.7 7752.4
Jul 2008 1419.9 7801.5 1416.2 7767.5
Aug 2008 1402.4 7789.5 1399.8 7764.6
Sep 2008 1461.0 7889.9 1440.0 7843.3
Oct 2008 1472.9 8002.6 1461.1 7957.0
Nov 2008 1512.2 8052.0 1512.1 8047.1
Dec 2008 1602.8 8246.4 1630.8 8267.2
Jan 2009 1587.3 8309.1 1579.1 8311.1
Feb 2009 1569.0 8348.4 1550.5 8337.1
Mar 2009 1577.5 8399.5 1593.2 8470.1
Apr 2009 1609.8 8390.1 1626.0 8464.9
May 2009 1610.8 8431.8 1616.3 8444.1
Jun 2009 1651.8 8452.6 1660.0 8454.8
Jul 2009 1661.5 8452.5 1656.0 8419.6
Aug 2009 1655.3 8428.4 1649.8 8393.8
Sep 2009 1665.8 8452.0 1640.3 8399.1
Oct 2009 1679.8 8482.4 1663.6 8432.9
Nov 2009 1679.9 8512.0 1682.4 8506.8
Dec 2009 1693.5 8528.8 1723.7 8550.5
Jan 2010 1681.0 8465.8 1673.6 8472.7
Feb 2010 1703.3 8533.6 1685.0 8517.2
Mar 2010 1712.0 8511.7 1729.5 8579.5
Apr 2010 1698.9 8522.4 1716.1 8599.5
May 2010 1704.0 8561.9 1708.0 8580.0
Jun 2010 1722.8 8591.1 1731.8 8601.4
Jul 2010 1725.9 8607.1 1717.7 8571.8
Aug 2010 1746.3 8652.6 1738.9 8601.9
Sep 2010 1769.2 8700.3 1740.1 8643.2
Oct 2010 1779.3 8740.8 1761.8 8699.3
Nov 2010 1817.2 8778.9 1823.0 8766.0
Dec 2010 1828.3 8812.2 1865.3 8848.9
Jan 2011 1850.3 8836.8 1841.0 8840.0
Feb 2011 1871.5 8898.2 1853.4 8879.2
Mar 2011 1888.2 8926.3 1907.1 8992.1
Apr 2011 1897.8 8958.3 1915.2 9045.7
May 2011 1929.5 9010.2 1933.5 9021.4
Jun 2011 1944.9 9097.7 1954.0 9113.2
Jul 2011 2003.8 9299.2 1992.7 9267.5
Aug 2011 2107.6 9531.3 2097.7 9465.9
Sep 2011 2130.8 9578.1 2091.3 9507.3

Appears to me that we've seen about a 300% increase in M 1 numbers in the last tens years or so.

Sorry about the formatting but cut and paste doesn't do a very good formatting job cross websites

 

[Uncensored2008]

regressive? How is a tax that rewards spending and penalizes savings regressive in light of the fact that those with higher incomes save a higher percentage?

Inflation places a far greater burden on people at lower incomes. The effect of inflation is inversely proportional to the income of the person in question. The amount spent on necessities such as food and energy ensures that those at the lowest income levels will pay the greatest percentage of their income in inflation-tax.

It is also convenient that food and energy costs have been removed from inflation calculations, it allows a rate of 4% to be reported when the actual rate is 9.6%

News Headlines

Inflation strips wealth from the middle and lowest segments of society and concentrates it at the top. What the left claims to oppose, they in fact impose.

 

[Uncensored2008]

It takes about 2 years before increases in the money supply translate into inflation.

Inflation is 9.6% - that isn't low.

 

[bobcollum]

Funny, I always thought it was a devaluation of the particular currency.

 

[Soggy in NOLA]

regressive? How is a tax that rewards spending and penalizes savings regressive in light of the fact that those with higher incomes save a higher percentage?

Inflation places a far greater burden on people at lower incomes. The effect of inflation is inversely proportional to the income of the person in question. The amount spent on necessities such as food and energy ensures that those at the lowest income levels will pay the greatest percentage of their income in inflation-tax.

It is also convenient that food and energy costs have been removed from inflation calculations, it allows a rate of 4% to be reported when the actual rate is 9.6%

News Headlines

Inflation strips wealth from the middle and lowest segments of society and concentrates it at the top. What the left claims to oppose, they in fact impose.

Who needs food and energy?

 

[Uncensored2008]

Who needs food and energy?

I believe Nancy Pelosi said "Let them buy green!"

 

[kaz]

You want to tax more, but you don't even realize that inflation is a tax. If the economy only had 1 dollar and the fed printed 100 more dollars...GUESS WHAT? Your dollar is worth less! It's a hidden tax. They are stealing from you...why do you support such tyranny?

You are completely correct, but liberals will never understand it. If they did they wouldn't be liberals.

But as you say the government by "printing money" increases inflation and devalues your money. I quote printing money because it doesn't typically involve physical printing, they just create it out of thin air via the Fed. They then spend it. You still have $1 but it's a lower percent of the economy then it was before and therefore buys less. Government stole it from you in front of your face. It's also a regressive tax because the poor spend a higher percent of their income. They just do it that way because people, particularly liberals, are butt stupid and they can get away with it.

 

[Soggy in NOLA]

Who needs food and energy?

I believe Nancy Pelosi said "Let them buy green!"

Soylent Green!

 

[pinqy]

It is also convenient that food and energy costs have been removed from inflation calculations, it allows a rate of 4% to be reported when the actual rate is 9.6%

Yeah, except food and energy are included: Table 1. Consumer Price Index for All Urban Consumers (CPI-U): U. S. City Average, by expenditure category and commodity and service group

 

[Uncensored2008]

Yeah, except food and energy are included: Table 1. Consumer Price Index for All Urban Consumers (CPI-U): U. S. City Average, by expenditure category and commodity and service group

Not really, they are "adjusted" per the 1982 and 1991 recalculations of the CPI.

 

[8537]

Well then it's a darn good thing inflation is so low.

It takes about 2 years before increases in the money supply translate into inflation.

Lol.

 

[8537]

And a regressive tax at that,

regressive? How is a tax that rewards spending and penalizes savings regressive in light of the fact that those with higher incomes save a higher percentage?

When inflation is high, wealthy people put their money into hard assets such as real estate. .

Oh my! How's that working out for 'em? Remind whose being penalized.

 

[Uncensored2008]

Oh my! How's that working out for 'em? Remind whose being penalized.

So your claim is the rich have gotten poorer, and the poor have gotten richer?

 

[8537]

regressive? How is a tax that rewards spending and penalizes savings regressive in light of the fact that those with higher incomes save a higher percentage?

Inflation places a far greater burden on people at lower incomes. The effect of inflation is inversely proportional to the income of the person in question. The amount spent on necessities such as food and energy ensures that those at the lowest income levels will pay the greatest percentage of their income in inflation-tax.

No, I don't think that's right. Wages also tend to track inflation, so the purchasing power of the average consumer only declines in a transitory manner.

People who have significant savings, on the other hand, see the value of that savings er

It is also convenient that food and energy costs have been removed from inflation calculations, it allows a rate of 4% to be reported when the actual rate is 9.6%

Food and energy are not "removed from the inflation calculation". They are not part of the core inflation which attempts to measure broad trends because they are both (1) volatile and (2) a significant portion of the basket.

 

[8537]

Oh my! How's that working out for 'em? Remind whose being penalized.

So your claim is the rich have gotten poorer, and the poor have gotten richer?

No, that's not my claim at all - of course, we also aren't in a period of high inflation and there are myriad other factors at work.

Do you dispute that inflation erodes savings?