The Spark

“The emancipation of the working class will only be achieved by the working class itself.” — Karl Marx

No Inflation?
Tell It to Retirees!

Dec 21, 2009

Retirees were amazed to read in a letter they received this month that their Social Security payments would not increase this year because there has been no inflation.

No inflation? The price of health care just jumped up 10 to 15%, not to mention gasoline, heat, electricity, water bills, taxes....

Yes, there’s inflation – everywhere except in the government’s Consumer Price Index, which has been cooked to make inflation disappear. The changes were implemented under the Clinton Administration, after some smaller changes had been made under Reagan and Carter. They have been cheating workers and retirees of their COLA payments ever since!

According to economist John Williams, if the CPI were calculated using the same methods existing in 1980, annual inflation based on November data would have been nearly 9%.

And don’t we know it!