I haven't seen a single comment on any article or video complaining that the government has been underreporting inflation for "forty years". What people are upset about is the staggering inflation we've experienced over the past three-and-a-half years. The "basket of goods" that most people routinely purchase (e.g., food, clothing, gasoline, utilities, insurance, etc.), and on which they spend most of their household budgets, has certainly grown much faster than the overall rate of inflation published by the current administration. This is why so many people feel that the federal government is gaslighting them regarding inflation. Their own experiences just don't reconcile to "the story".
No discussion about the rate of inflation is meaningful without the inclusion of wages in that discussion. Understanding the relationship between inflation and wage growth is crucial. Context matters.
If you redo the price tables you have from 2020 to 2024, you will find that the true inflation rate was much higher than reported over the last 4 years.
No he is correct. Inflation between 2020 to 2024 was obviously higher than the 1-4% we’ve seen for the last 40 years and if you adjust for true housing inflation it would be higher. The official number for 2020 to 2024 is somewhere between 17% to 20% but average housing prices alone went from around 300k to closer to 450k in just four years. Many people don’t trust the CPI and official sources for that reason alone. There are some good points in the video, but when you just look at the last 4 years that is where his explanation falls short.
@@bentheo You made a simple error. Most people have zero need nor desire to give away their current property to family or friends, and buy new at full price in the current market. That is what incorporating the recent change in house prices at full valuation into the CPI would require. Most people will instead continue paying their current mortgage, or have no mortgage payment at all. Some people will have their rent increased, or will pay more for their mortgage. It is not remotely close to 100% of people.
In 2015 I purchased a new truck. I recently purchased another new truck, same model, same basic features, same trim, etc. The new truck has more than doubled in price over nine years. That's 8%+.
In 2007 i purchased a used 4 year old top trim honda pilot with 40k miles for $21k if you look at the prices of a 4 year old top trim honda pilot with the same miles, you would see it is right at the same price adjusted for inflation.
If substitutions didn't distort the actual long term inflation numbers there would be little difference between the basket of goods in the long run. The issue is that substitution will be compounded. 1 lb Porterhouse becomes select strip to flank to ground beef. Swapping from housing price to rental price is even worse as rent is a liability where a house is an asset. (You will own nothing and be happy).
8:08 This is an excellent point. My personal inflation rate (which also factors in my lifestyle inflation) is much more significant to my retirement plans than CPI is, and easy for me to measure by simply tracking my expenses.
Thanks for the video! I was looking earlier, and hoping to get one from you soon. On topic, I have argued these same points with my conspiratorial friends for years. Its as if it takes about 6 months for them to forget again just how powerful compounding small numbers is. And why I have also spent years trying to get them to quit buying 1% or 2% management cost funds when they have a perfectly good S&P500 index fund that only costs 0.05% in their 401k list of investments.
Use the Big Mac inflation standard, in 1981 a Big Mac cost $1.30, to day it costs $5.69, That's roughly 3.5% annual inflation over the last 43 years. Median home price in 1981 about $70k, today $393k or 4.1% annually. As for the cars, I'n 1981 the avg was about $9K, today $41k or roughly 3.6% annually - and...... they lasted longer, were easier to repair, and cheaper to maintain. -Bottom line, actual costs are higher than what the government says, just not 7% higher.
The average home price in the United States was $495,100 in the second quarter of 2023. In 1980, it was $47,200. Approximately 5,7% not taking into account new taxes etc.
In 1985 I serviced my car myself (oil, filters, transmission), today you need to bring even a new car into service twice a year. So servicing of vehicles for me has increased 50 fold perhaps compared to 1985, although the government will say service inflation is only 5 times more expensive. Similar situation for many other appliances.
Suggestion for a video topic for me (and maybe others). You mention the spending smile a lot, and have referenced source documentation from Morningstar (which I have read, thankyou for pointing it out). But you have not delved into aspects of spending that don't really match up with a curved spend such as a fixed housing cost. Also some costs are stochastic, like buying a replacement vehicle or repairing an HVAC. Using me as an example First: I am planning to use a $3200 a month "budget" for all the random common things I do in life, like eating, buying random household necessities, utilities, gas, clothing, etc. Second: I either downsize my house, and have no house payment, budgeting for insurance + taxes. Or I don't sell it (2.625% int), and its last payment is at 77, taxes and insurance continuing. Third: I have a car payment now, but wont in retirement. But at some point I will need to replace it. One time buy, cant really budget for when that will happen. 5 years? 17 years? Forth: Ill spend on vacation/travel. These effectively eat into the money I will be converting into my RothIRA from my 401k. So I need to get over that mental hurdle... I have not budgeted any travel costs in the $3200 core budget. How do you figure out a spending smile for this? My master retirement spreadsheet models using 98.2/98.5/98.8/1.01 by decade compound reductions, still adjusting normal for inflation. This hits 75% at 90, (but still up due to inflation of course). But I only multiply the root $3200 budget.
@@_-Karl-_ I included my planned budget concerns to elucidate how they do not match the different concept of a "spending smile" in retirement, which is used to help determine a starting withdrawal rate at the beginning of retirement. I am not trying to develop a budget, nor asking for budgeting help. I am suggesting a video on determining that starting value when not all spends follow a spending smile.
On the cost comparison table, most of the items increases is well over the 2.93x that CPI inflation would have you believe. Yes, inflation is not at a cumulative 7% since 1985, but it is also not at 2.80% that CPI claims. Quality of goods: today a Ford Bronco is much better than a 1985 model. What about the food we eat or the clothes we wear or the health and care service we get; much worse quality today. Also, peoples spending habits have changed. Most people today eat from a restaurant 10 times a week, whereas in 1985 going to a restaurant was once a week at most. All governments have been massively under-reporting inflation. But my definition of massive is 1.5% per year. Perhaps it is not inflation, but the dollar which is the issue. The dollar is becoming more worthless every year because the government is "printing" money rather than increasing taxes and becoming more efficient. The US government debt is unpayable and no one has any idea of what will happen. In 1985 a family would have one breadwinner, and yet they could still afford to buy a house and send the kids to college or trade school.
Or I decide I'm not going to replace my steak with turkey patties. Turkey patties are not New York strip, no matter how many self-hypnosis sessions I hold trying to convince myself otherwise. I also think I'm losing ground at a faster rate than 2.8% per year annum. I guess my basket and the government's basket contain different items.
"shadow" is all I needed to see to discount the alleged underreporting. Paraphrasing the host, you don't need more things/people to blame, but better planning with available resources.
the selected goods pricelist was impressive, the bronco comparison didn't fit anywhere near in that group. "smarter, safer, more efficient cars have become" if they cost 3+x more! i'd much rather gat the 12K simple car
Surprised that you find an issue with that statement. What objective data points to cars being 'dumber, riskier, and less efficient'? Btw, $12k to $40k is not 7.5x more.
@@SafeguardWealthManagement you're right, i deleted some lines. maybe i was thinking of all the pickup trucks that are over 100k now, just looked and new '24 bronco prices were 39 to 72k (72k would be 5x though) they are made in mexico, if i'm not mistaken, to keep that price lower than an american made vehicle. about safer, smarter, more efficient while that may the case in some respects i'd rather have a car that isn't a microwave oven inside with all the EMF radiation. and i heard something recently about planned obsolescence/repairs built into cars now and they build that anticipation into their profit model.
Can the average family with a single earner have two kids, a car, a home, and afford to send those kids to college anymore? No. Wages are not rising with inflation. Inflation wins. You lose. :-(
I recently went found my notebooks from 20 and 10 years ago and I can put some context to tech expenses too: 2004 Internet $160 Phonebill $110 Midtier laptop $1000 Midtier cellphone $170 Cable: $140 2014 Internet 120 Phonebill 100 Midtier laptop 1000 Midtier cellphone 300 Cable 0 2024 Internet 55 Phonebill 70 Midtier laptop 1000 Midtier cellphone 600 Cable 0 so the cost of technology has gone down considerably as well
@@idi01s 20 bucks for youtube premium. Don’t care for football. And my nba team has been embarrassing for the past 3 years, so none, if not, 25 bucks for half the year. Still cheaper than cable
I think people see certain items dramatically increase in price over the short run, such as some food items, and believe the total market inflation is the same. Then you add the Government reporting to meet a political narrative which just multiplies the issues.
I have made an attempt to dispel some of the naysay posts that have already appeared. Its as if people did not watch the video, or could not understand it.
I purchased a house 37 years ago for 82K. Today it's listed value is 660K. That's a 5.8% annual increase over those 37 years. And, no, the home wasn't undervalued when I bought it. That sure beats the Feds 2% target!
Great analysis and discussion Eric. I feel the reason it's so easy for some to fall for the conspiracy theories is that the government is so often shown to be dishonest and deceiving on something they are telling us. Your eyes looked like they were bothering you, did you switch to contacts? Larry, Central Valley, Ca.
The reason cars don't cost $170K is because they are no longer produced in America. They are outsourced to China and Korea and other places. If they were manufactured here, they would cost that much. I think 7%, 12% is more accurate. Same thing with healthcare. All the drugs are now manufactured overseas.
I don't understand the argument. They would cost more too if we had less automation and workers were making everything by hand. Why would this matter in calculating inflation?
@@SafeguardWealthManagement precisely the point. Just like it would make no sense to compare cars made via full automation with cars made by hand. It also makes no sense to compare cars made in a 1st world country with cars made by cheap underpaid labor. Absolutely none.
All these comments and the video miss the point. People are upset about the last 4 years not all the way back to 1985. Housing prices rose by over 40% in 4 years and food prices may have as well. Sure, you can average that out over 40 years and it seems better but if you are a 30yo who has an $80k salary and you can’t afford to buy a home when people making your salary could just 4 years ago it doesn’t add up.
It’s no coincidence that the two sectors seeing the highest levels of inflation are those with the most government intervention (healthcare & college tuition)
@@_-Karl-_ The heaviest utilizers of healthcare (the elderly) get healthcare for basically free thanks to Medicare/Medicaid. How is that not a problem for the rest of us? Example: Imagine if the heaviest consumers of milk got all of their milk consumption paid for by the government (taxpayer)…what would happen to the cost of milk for everyone else?
Great video. Price increases are not always due to inflationary pressures, but also due to corporations using “inflation” to keep prices higher. Corporations have made enormous profits in the last two years. Conspiracy theorists are not open to this data as it doesn’t support their political beliefs.
Average 2.8% inflation despite the Fed’s alleged 2% target. This shows how poorly the Fed does their job, because that is a huge difference mathematically. It doesn’t enrage the public because they don’t understand the mathematics and see that over time an extra 0.8% inflation is a monstrous loss of buying power.
add a survey to your video and you´ll get some feed back from us. Healthcare, college, car insurance, etc are way ahead. Inflation is improperly measured, putting it nicely. Also the compounding argument is misleading because the perception of real inflation being higher is a newish thing. In the 40 year range of your example the rise is less at the beginning. If you recalculate that table with a compounding interest rate instead of a stable one you come to a more accurate conclusion in final numbers around 5% and a creeping .05%.
You are incorrect. Healthcare costs are not "way ahead" College costs are not "way ahead" car insurance is not "way ahead". I do not know what "etc" you refer to. Please provide data to support your conspiratorial claims. In this video you can see data for healthcare and tuition at 6:09 Clearly not "way ahead". I looked up car insurance, BTW. 5.06% inflation since 1985 to match the chart above, and again that's a lot less than the 7% or 12% columns.
@@nobeliefisok9174 Bureau of Labor Statistics. Series Id: CUUR0000SEEB01 for college cost, the rest you go and get them there as well. Average since 1995 4.5%.
"Renting has become cheaper than buying", really? Have fun replacing steak with dog food for a 2% inflation rate calculation. Inflation is around 10% for the past few years, only going higher until rates and balance sheet is restrictive. This guy is creating a straw man argument for inflation from the 80's while those who claim inflation is under-reported are for the last few years. Dude, annual tuition is about $80k when you include all the fees and other expenses of attending a private university. Inflation is going to wreck all financial plans, $5 mil is about the same as $1 mil in 2000, by 2030, one will need $10 mil, $20 mil by 2040, etc. Stick to discussing IRA contribution limits.
1. Yes, renting has become cheaper than buying in most markets. 2. No one is replacing steak with dog food or proposing that. 3. Is there a recent, specific change in CPI that has caused this 'massive underreporting' for the last few years? 4. Your steak for dog food comment is an example of a straw man. I used the 1980s because many have cited it to explain the discrepancies between CPI and 'real inflation.' I'm open to data pointing to the massive discrepancy in the last few years, but no one has commented anything specific on this side or provided data other than singular examples. 5. Annual tuition was based on research from CollegeBoard, a nonprofit that takes average and enrollment-based weighing and updates data annually. 6. "Inflation is going to wreck all financial plans" - forget discussing IRA contribution limits. What good is that going to do?
Good analysis, and you showed that over a long period of time inflation has been in line with reported amounts. However, I do not believe today's reported numbers. I faithfully follow budgeted spending, and since the current sorry administration has taken over, my expenses have risen far more than the reported amounts.
I haven't seen a single comment on any article or video complaining that the government has been underreporting inflation for "forty years". What people are upset about is the staggering inflation we've experienced over the past three-and-a-half years. The "basket of goods" that most people routinely purchase (e.g., food, clothing, gasoline, utilities, insurance, etc.), and on which they spend most of their household budgets, has certainly grown much faster than the overall rate of inflation published by the current administration. This is why so many people feel that the federal government is gaslighting them regarding inflation. Their own experiences just don't reconcile to "the story".
No discussion about the rate of inflation is meaningful without the inclusion of wages in that discussion. Understanding the relationship between inflation and wage growth is crucial. Context matters.
In a 9 minute video you want a comprehensive discussion on the economy?
@@Toomanydays The video sucked
@@bluesky2145 A bit harsh.
If you redo the price tables you have from 2020 to 2024, you will find that the true inflation rate was much higher than reported over the last 4 years.
At 5:38 and 6:09 the prices are 1985 to 2024, which includes 2020, 2021, 2022, 2023, and 2024. So what are you referring to?
@@nobeliefisok9174 he wanted to cherry pick the years with the highest inflation
No he is correct. Inflation between 2020 to 2024 was obviously higher than the 1-4% we’ve seen for the last 40 years and if you adjust for true housing inflation it would be higher. The official number for 2020 to 2024 is somewhere between 17% to 20% but average housing prices alone went from around 300k to closer to 450k in just four years. Many people don’t trust the CPI and official sources for that reason alone. There are some good points in the video, but when you just look at the last 4 years that is where his explanation falls short.
@@bentheo You made a simple error. Most people have zero need nor desire to give away their current property to family or friends, and buy new at full price in the current market. That is what incorporating the recent change in house prices at full valuation into the CPI would require. Most people will instead continue paying their current mortgage, or have no mortgage payment at all. Some people will have their rent increased, or will pay more for their mortgage. It is not remotely close to 100% of people.
In 2015 I purchased a new truck. I recently purchased another new truck, same model, same basic features, same trim, etc. The new truck has more than doubled in price over nine years. That's 8%+.
In 2007 i purchased a used 4 year old top trim honda pilot with 40k miles for $21k if you look at the prices of a 4 year old top trim honda pilot with the same miles, you would see it is right at the same price adjusted for inflation.
If substitutions didn't distort the actual long term inflation numbers there would be little difference between the basket of goods in the long run. The issue is that substitution will be compounded. 1 lb Porterhouse becomes select strip to flank to ground beef.
Swapping from housing price to rental price is even worse as rent is a liability where a house is an asset. (You will own nothing and be happy).
I once went to the grocery and my wife told me to buy a cucumber and I got a zuchini by accident...
A zuchini is NOT a cucumber. Ask me how I know.
I agree but are you trying to say one hurts more than the other?
8:08 This is an excellent point. My personal inflation rate (which also factors in my lifestyle inflation) is much more significant to my retirement plans than CPI is, and easy for me to measure by simply tracking my expenses.
Thanks for the video! I was looking earlier, and hoping to get one from you soon. On topic, I have argued these same points with my conspiratorial friends for years. Its as if it takes about 6 months for them to forget again just how powerful compounding small numbers is. And why I have also spent years trying to get them to quit buying 1% or 2% management cost funds when they have a perfectly good S&P500 index fund that only costs 0.05% in their 401k list of investments.
Buy less save more
Use the Big Mac inflation standard, in 1981 a Big Mac cost $1.30, to day it costs $5.69, That's roughly 3.5% annual inflation over the last 43 years. Median home price in 1981 about $70k, today $393k or 4.1% annually. As for the cars, I'n 1981 the avg was about $9K, today $41k or roughly 3.6% annually - and...... they lasted longer, were easier to repair, and cheaper to maintain. -Bottom line, actual costs are higher than what the government says, just not 7% higher.
That and the quality of a Big Mac in 1981 was significantly greater than today’s burger.
The average home price in the United States was $495,100 in the second quarter of 2023. In 1980, it was $47,200. Approximately 5,7% not taking into account new taxes etc.
In 1985 I serviced my car myself (oil, filters, transmission), today you need to bring even a new car into service twice a year. So servicing of vehicles for me has increased 50 fold perhaps compared to 1985, although the government will say service inflation is only 5 times more expensive. Similar situation for many other appliances.
@@daron9229 the quality of all the food you bought in 1985 was much better than even the "organic" things we stuff into our mouths today.
your not taking into account the fact that production gets more efficient every year which decreases CPI so real in inflation is higher
A quarter beef I just bought cost as much as a 1/2 beef did only two years ago. There is no way inflation is in single digits
Great information. Thank you.
Suggestion for a video topic for me (and maybe others). You mention the spending smile a lot, and have referenced source documentation from Morningstar (which I have read, thankyou for pointing it out). But you have not delved into aspects of spending that don't really match up with a curved spend such as a fixed housing cost. Also some costs are stochastic, like buying a replacement vehicle or repairing an HVAC.
Using me as an example
First: I am planning to use a $3200 a month "budget" for all the random common things I do in life, like eating, buying random household necessities, utilities, gas, clothing, etc.
Second: I either downsize my house, and have no house payment, budgeting for insurance + taxes. Or I don't sell it (2.625% int), and its last payment is at 77, taxes and insurance continuing.
Third: I have a car payment now, but wont in retirement. But at some point I will need to replace it. One time buy, cant really budget for when that will happen. 5 years? 17 years?
Forth: Ill spend on vacation/travel. These effectively eat into the money I will be converting into my RothIRA from my 401k. So I need to get over that mental hurdle... I have not budgeted any travel costs in the $3200 core budget.
How do you figure out a spending smile for this? My master retirement spreadsheet models using 98.2/98.5/98.8/1.01 by decade compound reductions, still adjusting normal for inflation. This hits 75% at 90, (but still up due to inflation of course). But I only multiply the root $3200 budget.
@@_-Karl-_ I included my planned budget concerns to elucidate how they do not match the different concept of a "spending smile" in retirement, which is used to help determine a starting withdrawal rate at the beginning of retirement. I am not trying to develop a budget, nor asking for budgeting help. I am suggesting a video on determining that starting value when not all spends follow a spending smile.
On the cost comparison table, most of the items increases is well over the 2.93x that CPI inflation would have you believe. Yes, inflation is not at a cumulative 7% since 1985, but it is also not at 2.80% that CPI claims.
Quality of goods: today a Ford Bronco is much better than a 1985 model. What about the food we eat or the clothes we wear or the health and care service we get; much worse quality today.
Also, peoples spending habits have changed. Most people today eat from a restaurant 10 times a week, whereas in 1985 going to a restaurant was once a week at most.
All governments have been massively under-reporting inflation. But my definition of massive is 1.5% per year.
Perhaps it is not inflation, but the dollar which is the issue. The dollar is becoming more worthless every year because the government is "printing" money rather than increasing taxes and becoming more efficient. The US government debt is unpayable and no one has any idea of what will happen.
In 1985 a family would have one breadwinner, and yet they could still afford to buy a house and send the kids to college or trade school.
Or I decide I'm not going to replace my steak with turkey patties. Turkey patties are not New York strip, no matter how many self-hypnosis sessions I hold trying to convince myself otherwise. I also think I'm losing ground at a faster rate than 2.8% per year annum. I guess my basket and the government's basket contain different items.
I don't know where you are finding a private college for $40K a year. Any decent private college now costs $60K tuition.
"shadow" is all I needed to see to discount the alleged underreporting. Paraphrasing the host, you don't need more things/people to blame, but better planning with available resources.
the selected goods pricelist was impressive, the bronco comparison didn't fit anywhere near in that group. "smarter, safer, more efficient cars have become" if they cost 3+x more! i'd much rather gat the 12K simple car
Would you rather earn 1985 wages? My first USAF paycheck in 1986 was $874 (a month)
Surprised that you find an issue with that statement. What objective data points to cars being 'dumber, riskier, and less efficient'?
Btw, $12k to $40k is not 7.5x more.
@@SpookyEng1 wasn't military pay extremely low comparted to civilian pay?
@@SafeguardWealthManagement you're right, i deleted some lines. maybe i was thinking of all the pickup trucks that are over 100k now, just looked and new '24 bronco prices were 39 to 72k (72k would be 5x though) they are made in mexico, if i'm not mistaken, to keep that price lower than an american made vehicle. about safer, smarter, more efficient while that may the case in some respects i'd rather have a car that isn't a microwave oven inside with all the EMF radiation. and i heard something recently about planned obsolescence/repairs built into cars now and they build that anticipation into their profit model.
Dozen eggs is 1.99 in 2024? Where can I buy them?
Cheaper than that at my Walmart. $1.99 for 18 eggs last week. Generally hover around $1-$1.50 at my Walmart for a dozen
@@nobeliefisok9174 it's like 3.50 at Aldi for a dozen
@@MeltingRubberZ28 Some eggs at Walmart are that high. The generic eggs in the foam containers are the cheapest.
@@nobeliefisok9174 Also depends on the size of the eggs, XL, L, or M size eggs do make a difference in price per dozen.
@alphamale2363 haha yeah I'll move to the promised land eventually
Can the average family with a single earner have two kids, a car, a home, and afford to send those kids to college anymore? No. Wages are not rising with inflation. Inflation wins. You lose. :-(
Absolutely. This guy lives in a safe little bubble
I recently went found my notebooks from 20 and 10 years ago and I can put some context to tech expenses too:
2004
Internet $160
Phonebill $110
Midtier laptop $1000
Midtier cellphone $170
Cable: $140
2014
Internet 120
Phonebill 100
Midtier laptop 1000
Midtier cellphone 300
Cable 0
2024
Internet 55
Phonebill 70
Midtier laptop 1000
Midtier cellphone 600
Cable 0
so the cost of technology has gone down considerably as well
how much are you paying for streaming services, to watch nfl and nba games? Used to be free in 2004.
@@idi01s 20 bucks for youtube premium. Don’t care for football. And my nba team has been embarrassing for the past 3 years, so none, if not, 25 bucks for half the year. Still cheaper than cable
Yeah your table of price is a little bit skewed. Where do you get a dozen of eggs for $1.99? Also remember gas for 99 cents in 2000
I think people see certain items dramatically increase in price over the short run, such as some food items, and believe the total market inflation is the same. Then you add the Government reporting to meet a political narrative which just multiplies the issues.
Excellent analysis. Conspiracies are easy to sell, and almost impossible to dispel for those who want them to be true.
I have made an attempt to dispel some of the naysay posts that have already appeared. Its as if people did not watch the video, or could not understand it.
I purchased a house 37 years ago for 82K. Today it's listed value is 660K. That's a 5.8% annual increase over those 37 years. And, no, the home wasn't undervalued when I bought it. That sure beats the Feds 2% target!
Great analysis and discussion Eric. I feel the reason it's so easy for some to fall for the conspiracy theories is that the government is so often shown to be dishonest and deceiving on something they are telling us. Your eyes looked like they were bothering you, did you switch to contacts? Larry, Central Valley, Ca.
Thanks Larry! Had eye surgery that Monday, all is good but yes, a bit of eye sensitivity that close to the surgery.
@@SafeguardWealthManagement I'm glad all is well Eric.
The reason cars don't cost $170K is because they are no longer produced in America. They are outsourced to China and Korea and other places. If they were manufactured here, they would cost that much. I think 7%, 12% is more accurate. Same thing with healthcare. All the drugs are now manufactured overseas.
I don't understand the argument. They would cost more too if we had less automation and workers were making everything by hand. Why would this matter in calculating inflation?
@@SafeguardWealthManagement precisely the point. Just like it would make no sense to compare cars made via full automation with cars made by hand. It also makes no sense to compare cars made in a 1st world country with cars made by cheap underpaid labor. Absolutely none.
During the 1st 1/2 of the video, I thought oh no - not Eric, but then you redeemed yourself in the 2nd 1/2 of the video.
All these comments and the video miss the point. People are upset about the last 4 years not all the way back to 1985. Housing prices rose by over 40% in 4 years and food prices may have as well. Sure, you can average that out over 40 years and it seems better but if you are a 30yo who has an $80k salary and you can’t afford to buy a home when people making your salary could just 4 years ago it doesn’t add up.
You misspelled corporate greed.
It’s no coincidence that the two sectors seeing the highest levels of inflation are those with the most government intervention (healthcare & college tuition)
@@_-Karl-_ The heaviest utilizers of healthcare (the elderly) get healthcare for basically free thanks to Medicare/Medicaid. How is that not a problem for the rest of us? Example: Imagine if the heaviest consumers of milk got all of their milk consumption paid for by the government (taxpayer)…what would happen to the cost of milk for everyone else?
Great video. Price increases are not always due to inflationary pressures, but also due to corporations using “inflation” to keep prices higher. Corporations have made enormous profits in the last two years. Conspiracy theorists are not open to this data as it doesn’t support their political beliefs.
Average 2.8% inflation despite the Fed’s alleged 2% target. This shows how poorly the Fed does their job, because that is a huge difference mathematically. It doesn’t enrage the public because they don’t understand the mathematics and see that over time an extra 0.8% inflation is a monstrous loss of buying power.
add a survey to your video and you´ll get some feed back from us. Healthcare, college, car insurance, etc are way ahead. Inflation is improperly measured, putting it nicely. Also the compounding argument is misleading because the perception of real inflation being higher is a newish thing. In the 40 year range of your example the rise is less at the beginning. If you recalculate that table with a compounding interest rate instead of a stable one you come to a more accurate conclusion in final numbers around 5% and a creeping .05%.
You are incorrect. Healthcare costs are not "way ahead" College costs are not "way ahead" car insurance is not "way ahead". I do not know what "etc" you refer to. Please provide data to support your conspiratorial claims. In this video you can see data for healthcare and tuition at 6:09 Clearly not "way ahead". I looked up car insurance, BTW. 5.06% inflation since 1985 to match the chart above, and again that's a lot less than the 7% or 12% columns.
@@nobeliefisok9174 Bureau of Labor Statistics. Series Id: CUUR0000SEEB01 for college cost, the rest you go and get them there as well. Average since 1995 4.5%.
"Renting has become cheaper than buying", really? Have fun replacing steak with dog food for a 2% inflation rate calculation. Inflation is around 10% for the past few years, only going higher until rates and balance sheet is restrictive. This guy is creating a straw man argument for inflation from the 80's while those who claim inflation is under-reported are for the last few years. Dude, annual tuition is about $80k when you include all the fees and other expenses of attending a private university. Inflation is going to wreck all financial plans, $5 mil is about the same as $1 mil in 2000, by 2030, one will need $10 mil, $20 mil by 2040, etc. Stick to discussing IRA contribution limits.
1. Yes, renting has become cheaper than buying in most markets.
2. No one is replacing steak with dog food or proposing that.
3. Is there a recent, specific change in CPI that has caused this 'massive underreporting' for the last few years?
4. Your steak for dog food comment is an example of a straw man. I used the 1980s because many have cited it to explain the discrepancies between CPI and 'real inflation.' I'm open to data pointing to the massive discrepancy in the last few years, but no one has commented anything specific on this side or provided data other than singular examples.
5. Annual tuition was based on research from CollegeBoard, a nonprofit that takes average and enrollment-based weighing and updates data annually.
6. "Inflation is going to wreck all financial plans" - forget discussing IRA contribution limits. What good is that going to do?
Good analysis, and you showed that over a long period of time inflation has been in line with reported amounts. However, I do not believe today's reported numbers. I faithfully follow budgeted spending, and since the current sorry administration has taken over, my expenses have risen far more than the reported amounts.
Looks like you are having an allergic reaction or other medical condition. I hope you are fine and recovering. I hope it is not Lyme disease.
Had eye surgery that Monday