The standard of living and the CPI index, what gives?
This new economy shows what happens to our standard of living. Thanksgiving came and went. Cheapest Turkey was $0.48/lb, went begging. Every one bought $0.69-$1.29/lb turkey, but only cost $10-12 total. Totally dis-satisfied with the major treat, for such a important holiday. Not expensive enough, not thankful enough.
There was a time, economists all cry out aloud; inflation is coming. What with turkeys not $0.29/lb? How does it configure into the all mighty CPI index. Greenspan will have a fit. Raise our interest rate by 1000 basis points.
Unfortunately, Greenspan also bought the high price bird. No one can resist the butter ball turkeys and they cost plenty more. Higher standard living, we are all for it. Darned the CPI. All we need is liquidity to provide for the even higher standard of living.
Ask some young fellow at a supermarket saturday, how much he is earning? "$6/hr.", he said. I asked what about "time and half" or tomorrow "double time Sunday". He does not know. Young people need to know the value of money and how much they have to put out to earn it. That is how productivity is fueling our economy. Not a dollar is wasted, but businesses are earning well ahead of labor cost. Next year will be even better when housing help, pounding nails will bring $14/hr.
Back in 1993, Greenspan testified in congress, he is determined to bring Americans a higher standard of living with plenty of liquidity. Don't rain on the parade now!
CPI will go up with the higher standard of living, and there is nothing wrong with it; since the AFL-CIO did it after the depression, created the "middle class" of America. |
