US Cost of Living Hits Record, Passing Pre-Crisis High

[devils chaplain]

Source: CNBC

One would think that after the worst financial crisis since the Great Depression, Americans could at least catch a break for a while with deflationary forces keeping the cost of living relatively low. That’s not the case.

A special index created by the Labor Department to measure the actual cost of living for Americans hit a record high in February, according to data released Thursday, surpassing the old high in July 2008. The Chained Consumer Price Index, released along with the more widely-watched CPI, increased 0.5 percent to 127.4, from 126.8 in January. In July 2008, just as the housing crisis was tightening its grip, the Chained Consumer Price Index hit its previous record of 126.9.

“The Federal Reserve continues to focus on the rate of change in inflation,” said Peter Bookvar, equity strategist at Miller Tabak. “Sure, it’s moving at a slower pace, but the absolute cost of living is now back at a record high in a country that has seven million less jobs.”

Read more: http://www.cnbc.com/id/42130406

[old mark]

1. K&R- Still waiting for my first COLA to my Social Security...nt

[Jackpine Radical]

12. Me too, as a matter of fact.

But then only the volatiles are increasing. You can get a log more iPad for your buck this year than last.

Personally, I'm thinking about finding some of those volatiles and inhaling them.

[No Elephants]

16. " In July 2008, just as the housing crisis was tightening its grip, the Chained Consumer Price

Index hit its previous record of 126.9."

You got your most recent cost-of-living adjustment in 2009, based on the 2008 high. Real problem is, the cost of living index used to calculate cost-of-living adjustments for OASDI does not include survival items and does include things that are not life or death necessities.

Those who have savings and/or other income will survive. I pray for the elderly and disabled who do not have savings and/or other income.

[old mark]

19. We are fortunate to have savings and other income...but I have not been on SS

long enough to have seen my first COLA, and I have a small pension from PA state, which has had ONE COLA since 1973, so I'm not counting on another...


mark

[Lifelong Protester]

2. does this go in the "No sh**, Sherlock" file...

just go to the grocery store, buy a few gallons of gas... etc.

All of this while my pay is being cut by 8% so some greedy corporate bas**** can get a 'break'

[devils chaplain]

3. Elizabeth Warren

I've yet to read Elizabeth Warren's "The Two Income Trap" book but I may have to. It's dumbfounding to me that as we've transitioned to two-income households and developed such "productivity boosting" technology that it's harder and harder simply to live a "normal life" that's not haunted by household financial fears.

Edited to add: and Americans are having much fewer children. One would figure that would save a bundle as well.

[sfwriter]

8. That's not Warren you should read but Marx...

Specifically Capital chapters 13 to 15 cover just this sort of thing.

This is the most accessible reading I know:

http://itunes.apple.com/us/podcast/reading-marxs-capital-audio/id283537064

Warren will document that it is happening. Marx will tell you why.

[neoralme]

15. Excellent.

[devils chaplain]

22. I've been meaning to...

Although I don't consider myself a communist or even a socialist really, I think Marx is essential reading for all people. I will get to it soon.

[AndyTiedye]

24. How Would Marx Explain China?

[Octafish]

14. Here's a great video lecture by Elizabeth Warren...

http://www.youtube.com/watch?v=akVL7QY0S8A

She maps the changes in the fortunes of the middle class, pretty darn accurately. I can see why Wall Street hates her.

PS: A hearty welcome to DU, devils chaplain. Like the moniker!

[devils chaplain]

21. Hey, thanks! :)

And I'll check out think video later.

[jschurchin]

4. There is no inflation.

I know, Ben Bernanke told me.

[liberal N proud]

5. Pushing the middle class closer to poverty

When we are all at that level, the rich still will not be happy or finished oppressing everyone beneath them.

It is Class Warfare.

[Jackpine Radical]

13. Nuts. No way. More like

Pushing the middle class closer to further into poverty

[xchrom]

6. recommend

[Donnachaidh]

7. We bail out companies that expect to keep high profit margins

So they use our tax money to fix their problems, and raise prices and fees as a f*ck you/thank you.

It's easy to ignore the suffering masses when you ride in limos.... :eyes:

[OhioChick]

20. +1000 n/t

[Bardley]

9. the 'stimulus' and bailouts have done nothing for the middle/working classes, except inflate their

cost of living and push them into debt whether they like it or not

and it's given the people who caused the problems riches that will be used as a further stranglehold on everyone below

any 'jobs' have still gone to the millions of 'guest workers' imported since this began

[JJW]

10. Irrational Exuberence of Commoditites

just another bubble for Banksters to speculate with.

[Bardley]

11. commodities reflect currency devaluation

and that's what's so evil about it, that the banksters are using the free money to profit from the damage that the free money caused

[No Elephants]

17. Bingo. Devaluation was one of many hidden costs of the bailout.

[Bardley]

23. a classic story warned about how bankers would repay us for bailing them out

A young girl was trudging along a mountain path, trying to reach her grandmother's house.
It was bitter cold, and the wind cut like a knife.
When she was within sight of her destination, she heard a rustle at her feet.

Looking down, she saw a snake.
Before she could move, the snake spoke to her.
He said, "I am about to die.
It is too cold for me up here, and I am freezing.
There is no food in these mountains, and I am starving.
Please put me under your coat and take me with you."

"No," replied the girl. "I know your kind. You are a rattlesnake.
If I pick you up, you will bite me, and your bite is poisonous."

"No, no," said the snake. "If you help me, you will be my best friend.
I will treat you differently."

The little girl sat down on a rock for a moment to rest and think things over.
She looked at the beautiful markings on the snake and had to admit that it was the most beautiful snake she had ever seen.

Suddenly, she said, "I believe you. I will save you.
All living things deserve to be treated with kindness."

The little girl reached over, put the snake gently under her coat and proceeded toward her grandmother's house.

Within a moment, she felt a sharp pain in her side.
The snake had bitten her.

"How could you do this to me?" she cried.
"You promised that you would not bite me, and I trusted you!"

"You knew what I was when you picked me up," hissed the snake as he slithered away.

[dotymed]

18. Since the elites are making huge untaxed profits,

and of course, wages have not risen for over 30 years for workers, we should be just happy as hell. They are allowing us to breath the same polluted air, aren't they?
Things will not change until the masses take to the streets (non-violently I hope) and demand it. Dismantle our "Wall Street Government" and demand our fair share of the wealth.
We have the right to Universal health care also.
It does not matter what I say.
It takes determined ACTION!

[RebelOne]

25. Have any of these idiots who determine

the Cost of Living Index been to the grocery store lately? Prices are slowly climbing. Every time I go shopping, I am paying more and more.