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To: GraceZ who wrote (50999)	1/23/2006 4:22:26 PM
From: shades	Read Replies (1) \| Respond to of 110194

If I compute prices based on a percentage of income basis, I spend less on the same basket of goods than I did 10 years ago. Your rent has went down for the same size home? We've done what most have done, we've increased the number of services and goods we consume year after year, as we've become wealthier. As the wealth/income gap widens and many articles have been posted to this topic - how do those increasing poor move up through the quintiles and replicate your success? Its thier own fault they didn't live through a savings rich - productive economy that was the envy of the world like you did eh? The golden years of the USA - the people killed by barbarians at the end of the roman empire - it is thier fault for not being born in the glory days of Rome eh? We of the sinking middle class may sink without further struggles into the working class where we belong, and probably when we get there it will not be so dreadful as we feared, for, after all, we have nothing to lose. George Orwell

To: GraceZ who wrote (50999)	1/23/2006 4:24:41 PM
From: Mike Johnston	Read Replies (3) \| Respond to of 110194

If I compute prices based on a percentage of income basis, I spend less on the same basket of goods than I did 10 years ago. Although your statement is true, for most people, it is silly to use that statement to suggest that there is no inflation. With the same line of reasoning, if my income goes up 20% next year while prices go up only 10%, i could claim that i am experiencing deflation. Inflation should measure general rise in the cost of living, irrespective of rising income levels or usage patterns specific to any one individual. Do you suggest we start adjusting inflation for income growth and individual consumption patterns ?