Bush's Labor Department reported that consumer prices rose 0.3% in October/2007. They also reported that consumer prices are rising at an annual rate of 3.6 percent. If these numbers are accurate I think it is fair to say that the CPI information reported by the Government is so statistically filtered that it doesn't represent the cost of living increases experienced by workers in the US this year.
Are you asking yourself "What is wrong with this picture?". Everyone knows that consumer prices have risen substantially over the past 3 months. Everything from gasoline costs in Upstate New York (my reference point) rising from $2.79/Gallon in June to $3.30/Gallon now to candy bars in the vending machine in the building where I work rising from $.70 to $.85 each. Just ask the typical mother with a family of 4 what she spent per month on groceries in January, in July, and what she is spending now. I think you'll get a much better understanding of how much the cost of living has increased this year, especially over the past 3 months. The information the Labor Department reported also said that consumer prices are rising at an annual rate of 3.6 percent which I don't believe for a minute. This information is so statistically filtered now that it doesn't really reflect what is happening in our economy or in our lives. It is just more misinformation produced by the Bush Administration to cover up the mess that our government and economy have become.
Now why would the Bush Administration want to report CPI information at a lower level than is reflected by prices in our economy? I can think of number of reasons:
1. Having COLA (Cost of Living Allowance) raises for Federal
Employees which are based on CPI information that
actually reflect the impact of rising prices due to
the weak dollar and increased cost of imported
Oil would drive up the federal deficit to levels
substantially above what they are now.
2. It would drive up wages due to workers insisting that
their compensation at least keep pace with inflation.
3. Identifying that we now have economic conditions
which were referred to as "Stagflation" in the
late 1970's and early 1980's whereby inflation was
high while wages are stagnant which reduced the standard
of living of US working families.
I used to be put off by the way the Bushy's constantly wanted to rewrite recent history based on the warped point of view of the neocons and Regan worshipers. I am now starting to think we might have to go back and audit everything reported by this administration to establish a realistic baseline upon which we can move forward in a new administration.