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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: reaper who wrote (201044)10/30/2002 9:57:18 AM
From: Les H  Read Replies (2) of 436258
 
three out of those four services categories are insulated from making reductions by direct government spending and indirect subsidies. one could argue the fourth is to some extent as well. you left out insurance which is going up as well.

many warranties have been taken off the price of the goods, such as furnaces, air conditioners, computers, and electronics, and sold as add-on items. that can add 20-25 percent to the price of a purchase such as a furnace we purchased recently.

the easiest way to measure inflation is to ask how much of a wage increase people need for the coming year to offset living costs. i think since the government gave itself nearly a 4 percent increase, that seems about right. in addition, public opinion polls show inflation expections range from about 3 to 6 percent depending on the demographic.
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