Many American families are having trouble making ends meet. It’s no surprise given the value of the dollar has fallen 95% since the Federal Reserve was created. Not everyone is harmed by inflation, but those who, according to inflationdata.com are,
the other big losers those on fixed incomes like the elderly and anyone whose income isn’t indexed to inflation.
Inflation affects them especially hard because the prices of things they buy go up while their income stays the same. In addition, the poor are generally renters so they don’t even benefit from a “cheaper” mortgage while they are paying higher prices for their groceries.
Also even though their wages may be indexed to inflation there is a time lag since it is usually only re-indexed once a year. During this time they are on the old wages while prices for things they buy have already gone up.
However, in her book Squeezed: Why Our Families Can’t Afford America, Alissa Quart doesn’t mention the Fed or money creation. Instead, most of us are “marinating in an atmosphere of ‘cruel optimism’…an atmosphere that ‘exists when something you desire is actually an obstacle to your flourishing.’”
Quart claims members of the middle class are happy idiots, encouraged to do what they love, while being pummeled by capitalism, no union protections, and a frayed social safety net. The hyper-educated poor are hidden she writes. “The number of people with graduate degrees receiving food assistance or other forms of federal aid nearly tripled between 2007 and 2010 and those with a Ph.D. who received assistance rose from 9,776 to 33,655.”…… Read More