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Run Away Inflation Rate- Lies about the Consumer Price Index cpi

You’ve been lied to That has now become that. it is your
hard-earned money so you should understand what is going on with it my
name is Daniel and welcome to money recall we’re gonna be going over
inflation CPI and toted lies stick around to the end and we’ll go over
exactly how this affects your real total taxes at the end have you ever had an
investment and people say oh adjusted for inflation this is how much you make
after it well because your money becomes worth less over time due to inflation
the ever-growing pile of money that dilutes the amount that your money is
worth this is known as inflation and it is what drives our economy pretty much
because of how the money is made and how the monetary system works
so one of the biggest ways the people index this is the CPI some people call
it the CPI or the Consumer Price Index and this is a grouped index of things
that are used in everyday life so this is your meats automobile oil and other
useful things like commodities as copper we’re gonna go over ways that they
manipulate it different ways of they make excuses for this and then go
over exactly what the real inflation rate should be inside the United States
the CPI has been adjusted multiple times and has now continuously been adjusted
for accuracy purposes and these have been adjusted majorly in the mid 80s and
then the late 90s they began dropping or adding things as they desired to make it
hit their target thing this is almost a confirmation bias where you look for
things that validate your end result that you would like drop like smash
subscribe now some of the reasons that they quote for manipulating numbers do
actually almost make sense when you look up against it for scrutiny and they are
such things as things add value over time for example if you bought a TV for
$150 for 40 years ago you can no longer buy that exact same TV because nobody
makes it however you can buy a thinner one for three times the price and it has
three times the function ability but this is really you know like things do
get better tires get better so people purchase less tires over the years
cars have gotten more efficient and they will last longer things like
this are their excuse for added value that skews the number we’ll give it like
one to two percent this is known as a hedronmics this is on of the reasons that they
actually considered starting this and that’s why most of the people inside
congress allow these numbers to continue to be adjusted another fallacy is
product substitution so they believe that if the price of steak goes up
you’ll simply move to ground beef or some other option like spam this
obviously does not take into account the loss in actual purchasing power and the
lower average living standard because of things like this as long as the numbers
that they predict and that they throw out are between two and three percent
roughly they really don’t care how this is manipulated at some point this is
pretty much like Ben Bernanke saying that there is no stock crash or economic
collapse coming up in the future when has the Fed ever said we think an
economic recession is around the corner they just don’t do that
that’s not what they’re there for that’s not how they function so let’s come over
here this handy-dandy computer that has been adjusted for hetero knotek’s in the
CPI so we take a look at this chart this is starting from the 80s and going on to
where it you can see the divergence here where they adjusted it and then again
here in the 90s when they adjusted again and then it has really been adjusted up
here and then they began continuously adjusting it throughout about this zone
they come through and they do adjustments every year or so often not
the biggest ones but they still try to massage the numbers and you can see the
absolute divergence between these two one gives about three and it never Peaks
above 5% even during the recession and then this one shows that inflation has
actually been around 10% if not higher during these times anyone who’s been
doing grocery shopping during this time it knows that it does not feel like 3%
inflation now overall inflation might be painting with too broad of a stroke and
it that very well could be a thing so let’s break it down into two categories
luxury items and then your necessities to live that are required and
commodities now these numbers are for 2010 don’t get me wrong but the same
thing is still going on when we look at the basic goods and necessity verse
luxury items we end up with looking at this chart things like butter have gone
up 20% gasoline is up 13% other pork items 10% you see that everything pretty
much that you used on a regular day’s basis is going up about 10 sometimes 15
percent and then luxury items are down 22 between you know we’ll give it an
average of about 10% they are down things that you would not need and are
obviously the luxury items so it is becoming more and more expensive to live
an average life but easier to have some of these luxuries and it’s basic goods
that are hampering people’s economic mobility in the system right now because
the prices are climbing so much higher than wages because they’ve been stagnant
for almost 40 years for a myriad of reasons but they’re just pretty much
stagnant right now all the best jobs that are being added are mostly minimum
wage and low-paying jobs so what does this mean for the average family as far
as their actual taxes because everybody who knows anything about inflation knows
the inflation is a tax on your money that you haven’t spent yet continuously
so if you’re already paying 24 percent in taxes and then another state to tax
let’s say five percent you’re already at 30 or 29 percent and then you have
another 11 percent of inflation taxing away the money that you have then you’re
at 40 percent right there and then all the other things like sales tax and all
these weird things that you have to pay for your property taxes and what have
you depending on where you’re at you can get up to 50 percent for the average
individual imagine 50 percent that means you for this first six months of the
year you’re working for the government first six months imagine if somebody
came up to you and said that you pretty much work for free for half a year would
you be happy about that and almost a fifth of that is taken out
just by the tax of inflation alone this has been a mining recall and if you made
it this hard you might as well smash this subscribe

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10 thoughts on “Run Away Inflation Rate- Lies about the Consumer Price Index cpi

  1. Great explanation on inflation! There are a lot of misconceptions about the CPI, definitely something people should understand.

  2. Good point on inflation. Income is not keeping pace. I wonder did we as consumers encourage this with the products we buy? Or are enough goods produced in US anymore, with decent income jobs? Very thought provoking.

  3. Wouldn't the true inflation be just a calculation of TOTAL USD DOLLARS PRINTED Year 1 vs total usd printed year 2 / total usd printed year 1? What is the federal formula for this type of ratio?

  4. Apparently, it hasn't occurred to you that you can track your purchases over time, by saving your receipts and using a spread sheeet. You can literally track your personal inflation rate, but you'd rather spread conspiracy theories about the CPI.

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