Inflation, Deflation & FOOD!

logopodcastOff the keyboard & microphone of RE

Follow us on Twitter @doomstead666
Friend us on Facebook

Aired on the Doomstead Diner on September 26, 2014

inflation-or-deflation

Discuss this Article & Rant at the Economics Table inside the Diner

Landscape  Pizza_15c

http://www.free-workout-routines.net/image-files/speed-bag-workout.jpgBefore getting into my rant on this timelessly popular topic in the Collapse-Econ Blogosphere, it’s worthwhile to review some of the Data and Tables tracking Inflation and the disappearing Middle Class in the FSoA for some background.

First, a month by month table for Annual Inflation Rates from 1913 to the Present.  If you look at this table in detail, you’ll probably be a bit surprised about how far the numbers deviate from the storyline that Da Federal Reserve has kept Inflation contained over the last Century.

If you don’t like to review tables, that is what the Rant is for that follows here. 🙂 The Rant looks at the last 40 years from 1970 to present day from Important Parameters everybody is concerned with, Pizza, Gas, College Tuitions & Paychecks.  Scroll down to the bottom here and just listen if you don’t feel like reviewing tables.  I suggest strapping on some Boxing Gloves and listening while working out on the Speed Bag.  Downloads available on the Diner.

Historical Annual U.S. Inflation Rate from 1913 to the present
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
2014 1.58 % 1.13 % 1.51 % 1.95 % 2.13 % 2.07 % 1.99 % 1.70 %
2013 1.59 % 1.98 % 1.47 % 1.06 % 1.36 % 1.75 % 1.96 % 1.52 % 1.18 % 0.96 % 1.24 % 1.50 % 1.47 %
2012 2.93 % 2.87 % 2.65 % 2.30 % 1.70 % 1.66 % 1.41 % 1.69 % 1.99 % 2.16 % 1.76 % 1.74 % 2.07 %
2011 1.63 % 2.11 % 2.68 % 3.16 % 3.57 % 3.56 % 3.63 % 3.77 % 3.87 % 3.53 % 3.39 % 2.96 % 3.16 %
2010 2.63 % 2.14 % 2.31 % 2.24 % 2.02 % 1.05 % 1.24 % 1.15 % 1.14 % 1.17 % 1.14 % 1.50 % 1.64 %
2009 0.03 % 0.24 % -0.38 % -0.74 % -1.28 % -1.43 % -2.10 % -1.48 % -1.29 % -0.18 % 1.84 % 2.72 % -0.34 %
2008 4.28 % 4.03 % 3.98 % 3.94 % 4.18 % 5.02 % 5.60 % 5.37 % 4.94 % 3.66 % 1.07 % 0.09 % 3.85 %
2007 2.08 % 2.42 % 2.78 % 2.57 % 2.69 % 2.69 % 2.36 % 1.97 % 2.76 % 3.54 % 4.31 % 4.08 % 2.85 %
2006 3.99 % 3.60 % 3.36 % 3.55 % 4.17 % 4.32 % 4.15 % 3.82 % 2.06 % 1.31 % 1.97 % 2.54 % 3.24 %
2005 2.97 % 3.01 % 3.15 % 3.51 % 2.80 % 2.53 % 3.17 % 3.64 % 4.69 % 4.35 % 3.46 % 3.42 % 3.39 %
2004 1.93 % 1.69 % 1.74 % 2.29 % 3.05 % 3.27 % 2.99 % 2.65 % 2.54 % 3.19 % 3.52 % 3.26 % 2.68 %
2003 2.60 % 2.98 % 3.02 % 2.22 % 2.06 % 2.11 % 2.11 % 2.16 % 2.32 % 2.04 % 1.77 % 1.88 % 2.27 %
2002 1.14 % 1.14 % 1.48 % 1.64 % 1.18 % 1.07 % 1.46 % 1.80 % 1.51 % 2.03 % 2.20 % 2.38 % 1.59 %
2001 3.73 % 3.53 % 2.92 % 3.27 % 3.62 % 3.25 % 2.72 % 2.72 % 2.65 % 2.13 % 1.90 % 1.55 % 2.83 %
2000 2.74 % 3.22 % 3.76 % 3.07 % 3.19 % 3.73 % 3.66 % 3.41 % 3.45 % 3.45 % 3.45 % 3.39 % 3.38 %
1999 1.67 % 1.61 % 1.73 % 2.28 % 2.09 % 1.96 % 2.14 % 2.26 % 2.63 % 2.56 % 2.62 % 2.68 % 2.19 %
1998 1.57 % 1.44 % 1.37 % 1.44 % 1.69 % 1.68 % 1.68 % 1.62 % 1.49 % 1.49 % 1.55 % 1.61 % 1.55 %
1997 3.04 % 3.03 % 2.76 % 2.50 % 2.23 % 2.30 % 2.23 % 2.23 % 2.15 % 2.08 % 1.83 % 1.70 % 2.34 %
1996 2.73 % 2.65 % 2.84 % 2.90 % 2.89 % 2.75 % 2.95 % 2.88 % 3.00 % 2.99 % 3.26 % 3.32 % 2.93 %
1995 2.80 % 2.86 % 2.85 % 3.05 % 3.19 % 3.04 % 2.76 % 2.62 % 2.54 % 2.81 % 2.61 % 2.54 % 2.81 %
1994 2.52 % 2.52 % 2.51 % 2.36 % 2.29 % 2.49 % 2.77 % 2.90 % 2.96 % 2.61 % 2.67 % 2.67 % 2.61 %
1993 3.26 % 3.25 % 3.09 % 3.23 % 3.22 % 3.00 % 2.78 % 2.77 % 2.69 % 2.75 % 2.68 % 2.75 % 2.96 %
1992 2.60 % 2.82 % 3.19 % 3.18 % 3.02 % 3.09 % 3.16 % 3.15 % 2.99 % 3.20 % 3.05 % 2.90 % 3.03 %
1991 5.65 % 5.31 % 4.90 % 4.89 % 4.95 % 4.70 % 4.45 % 3.80 % 3.39 % 2.92 % 2.99 % 3.06 % 4.25 %
1990 5.20 % 5.26 % 5.23 % 4.71 % 4.36 % 4.67 % 4.82 % 5.62 % 6.16 % 6.29 % 6.27 % 6.11 % 5.39 %
1989 4.67 % 4.83 % 4.98 % 5.12 % 5.36 % 5.17 % 4.98 % 4.71 % 4.34 % 4.49 % 4.66 % 4.65 % 4.83 %
1988 4.05 % 3.94 % 3.93 % 3.90 % 3.89 % 3.96 % 4.13 % 4.02 % 4.17 % 4.25 % 4.25 % 4.42 % 4.08 %
1987 1.46 % 2.10 % 3.03 % 3.78 % 3.86 % 3.65 % 3.93 % 4.28 % 4.36 % 4.53 % 4.53 % 4.43 % 3.66 %
1986 3.89 % 3.11 % 2.26 % 1.59 % 1.49 % 1.77 % 1.58 % 1.57 % 1.75 % 1.47 % 1.28 % 1.10 % 1.91 %
1985 3.53 % 3.52 % 3.70 % 3.69 % 3.77 % 3.76 % 3.55 % 3.35 % 3.14 % 3.23 % 3.51 % 3.80 % 3.55 %
1984 4.19 % 4.60 % 4.80 % 4.56 % 4.23 % 4.22 % 4.20 % 4.29 % 4.27 % 4.26 % 4.05 % 3.95 % 4.30 %
1983 3.71 % 3.49 % 3.60 % 3.90 % 3.55 % 2.58 % 2.46 % 2.56 % 2.86 % 2.85 % 3.27 % 3.79 % 3.22 %
1982 8.39 % 7.62 % 6.78 % 6.51 % 6.68 % 7.06 % 6.44 % 5.85 % 5.04 % 5.14 % 4.59 % 3.83 % 6.16 %
1981 11.83 % 11.41 % 10.49 % 10.00 % 9.78 % 9.55 % 10.76 % 10.80 % 10.95 % 10.14 % 9.59 % 8.92 % 10.35 %
1980 13.91 % 14.18 % 14.76 % 14.73 % 14.41 % 14.38 % 13.13 % 12.87 % 12.60 % 12.77 % 12.65 % 12.52 % 13.58 %
1979 9.28 % 9.86 % 10.09 % 10.49 % 10.85 % 10.89 % 11.26 % 11.82 % 12.18 % 12.07 % 12.61 % 13.29 % 11.22 %
1978 6.84 % 6.43 % 6.55 % 6.50 % 6.97 % 7.41 % 7.70 % 7.84 % 8.31 % 8.93 % 8.89 % 9.02 % 7.62 %
1977 5.22 % 5.91 % 6.44 % 6.95 % 6.73 % 6.87 % 6.83 % 6.62 % 6.60 % 6.39 % 6.72 % 6.70 % 6.50 %
1976 6.72 % 6.29 % 6.07 % 6.05 % 6.20 % 5.97 % 5.35 % 5.71 % 5.49 % 5.46 % 4.88 % 4.86 % 5.75 %
1975 11.80 % 11.23 % 10.25 % 10.21 % 9.47 % 9.39 % 9.72 % 8.60 % 7.91 % 7.44 % 7.38 % 6.94 % 9.20 %
1974 9.39 % 10.02 % 10.39 % 10.09 % 10.71 % 10.86 % 11.51 % 10.86 % 11.95 % 12.06 % 12.20 % 12.34 % 11.03 %
1973 3.65 % 3.87 % 4.59 % 5.06 % 5.53 % 6.00 % 5.73 % 7.38 % 7.36 % 7.80 % 8.25 % 8.71 % 6.16 %
1972 3.27 % 3.51 % 3.50 % 3.49 % 3.23 % 2.71 % 2.95 % 2.94 % 3.19 % 3.42 % 3.67 % 3.41 % 3.27 %
1971 5.29 % 5.00 % 4.71 % 4.16 % 4.40 % 4.64 % 4.36 % 4.62 % 4.08 % 3.81 % 3.28 % 3.27 % 4.30 %
1970 6.18 % 6.15 % 5.82 % 6.06 % 6.04 % 6.01 % 5.98 % 5.41 % 5.66 % 5.63 % 5.60 % 5.57 % 5.84 %
1969 4.40 % 4.68 % 5.25 % 5.52 % 5.51 % 5.48 % 5.44 % 5.71 % 5.70 % 5.67 % 5.93 % 6.20 % 5.46 %
1968 3.65 % 3.95 % 3.94 % 3.93 % 3.92 % 4.20 % 4.49 % 4.48 % 4.46 % 4.75 % 4.73 % 4.72 % 4.27 %
1967 3.46 % 2.81 % 2.80 % 2.48 % 2.79 % 2.78 % 2.77 % 2.45 % 2.75 % 2.43 % 2.74 % 3.04 % 2.78 %
1966 1.92 % 2.56 % 2.56 % 2.87 % 2.87 % 2.53 % 2.85 % 3.48 % 3.48 % 3.79 % 3.79 % 3.46 % 3.01 %
1965 0.97 % 0.97 % 1.29 % 1.62 % 1.62 % 1.94 % 1.61 % 1.94 % 1.61 % 1.93 % 1.60 % 1.92 % 1.59 %
1964 1.64 % 1.64 % 1.31 % 1.31 % 1.31 % 1.31 % 1.30 % 0.98 % 1.30 % 0.97 % 1.30 % 0.97 % 1.28 %
1963 1.33 % 1.00 % 1.33 % 0.99 % 0.99 % 1.32 % 1.32 % 1.32 % 0.99 % 1.32 % 1.32 % 1.64 % 1.24 %
1962 0.67 % 1.01 % 1.01 % 1.34 % 1.34 % 1.34 % 1.00 % 1.34 % 1.33 % 1.33 % 1.33 % 1.33 % 1.20 %
1961 1.71 % 1.36 % 1.36 % 1.02 % 1.02 % 0.68 % 1.35 % 1.01 % 1.35 % 0.67 % 0.67 % 0.67 % 1.07 %
1960 1.03 % 1.73 % 1.73 % 1.72 % 1.72 % 1.72 % 1.37 % 1.37 % 1.02 % 1.36 % 1.36 % 1.36 % 1.46 %
1959 1.40 % 1.05 % 0.35 % 0.35 % 0.35 % 0.69 % 0.69 % 1.04 % 1.38 % 1.73 % 1.38 % 1.73 % 1.01 %
1958 3.62 % 3.25 % 3.60 % 3.58 % 3.21 % 2.85 % 2.47 % 2.12 % 2.12 % 2.12 % 2.11 % 1.76 % 2.73 %
1957 2.99 % 3.36 % 3.73 % 3.72 % 3.70 % 3.31 % 3.28 % 3.66 % 3.28 % 2.91 % 3.27 % 2.90 % 3.34 %
1956 0.37 % 0.37 % 0.37 % 0.75 % 1.12 % 1.87 % 2.24 % 1.87 % 1.86 % 2.23 % 2.23 % 2.99 % 1.52 %
1955 -0.74 % -0.74 % -0.74 % -0.37 % -0.74 % -0.74 % -0.37 % -0.37 % 0.37 % 0.37 % 0.37 % 0.37 % -0.28 %
1954 1.13 % 1.51 % 1.13 % 0.75 % 0.75 % 0.37 % 0.37 % 0.00 % -0.37 % -0.74 % -0.37 % -0.74 % 0.32 %
1953 0.38 % 0.76 % 1.14 % 0.76 % 1.14 % 1.13 % 0.37 % 0.75 % 0.75 % 1.12 % 0.75 % 0.75 % 0.82 %
1952 4.33 % 2.33 % 1.94 % 2.33 % 1.93 % 2.32 % 3.09 % 3.09 % 2.30 % 1.91 % 1.14 % 0.75 % 2.29 %
1951 8.09 % 9.36 % 9.32 % 9.32 % 9.28 % 8.82 % 7.47 % 6.58 % 6.97 % 6.50 % 6.88 % 6.00 % 7.88 %
1950 -2.08 % -1.26 % -0.84 % -1.26 % -0.42 % -0.42 % 1.69 % 2.10 % 2.09 % 3.80 % 3.78 % 5.93 % 1.09 %
1949 1.27 % 1.28 % 1.71 % 0.42 % -0.42 % -0.83 % -2.87 % -2.86 % -2.45 % -2.87 % -1.65 % -2.07 % -0.95 %
1948 10.23 % 9.30 % 6.85 % 8.68 % 9.13 % 9.55 % 9.91 % 8.89 % 6.52 % 6.09 % 4.76 % 2.99 % 7.74 %
1947 18.13 % 18.78 % 19.67 % 19.02 % 18.38 % 17.65 % 12.12 % 11.39 % 12.75 % 10.58 % 8.45 % 8.84 % 14.65 %
1946 2.25 % 1.69 % 2.81 % 3.37 % 3.35 % 3.31 % 9.39 % 11.60 % 12.71 % 14.92 % 17.68 % 18.13 % 8.43 %
1945 2.30 % 2.30 % 2.30 % 1.71 % 2.29 % 2.84 % 2.26 % 2.26 % 2.26 % 2.26 % 2.26 % 2.25 % 2.27 %
1944 2.96 % 2.96 % 1.16 % 0.57 % 0.00 % 0.57 % 1.72 % 2.31 % 1.72 % 1.72 % 1.72 % 2.30 % 1.64 %
1943 7.64 % 6.96 % 7.50 % 8.07 % 7.36 % 7.36 % 6.10 % 4.85 % 5.45 % 4.19 % 3.57 % 2.96 % 6.00 %
1942 11.35 % 12.06 % 12.68 % 12.59 % 13.19 % 10.88 % 11.56 % 10.74 % 9.27 % 9.15 % 9.09 % 9.03 % 10.97 %
1941 1.44 % 0.71 % 1.43 % 2.14 % 2.86 % 4.26 % 5.00 % 6.43 % 7.86 % 9.29 % 10.00 % 9.93 % 5.11 %
1940 -0.71 % 0.72 % 0.72 % 1.45 % 1.45 % 2.17 % 1.45 % 1.45 % -0.71 % 0.00 % 0.00 % 0.71 % 0.73 %
1939 -1.41 % -1.42 % -1.42 % -2.82 % -2.13 % -2.13 % -2.13 % -2.13 % 0.00 % 0.00 % 0.00 % 0.00 % -1.30 %
1938 0.71 % 0.00 % -0.70 % -0.70 % -2.08 % -2.08 % -2.76 % -2.76 % -3.42 % -4.11 % -3.45 % -2.78 % -2.01 %
1937 2.17 % 2.17 % 3.65 % 4.38 % 5.11 % 4.35 % 4.32 % 3.57 % 4.29 % 4.29 % 3.57 % 2.86 % 3.73 %
1936 1.47 % 0.73 % 0.00 % -0.72 % -0.72 % 0.73 % 1.46 % 2.19 % 2.19 % 2.19 % 1.45 % 1.45 % 1.04 %
1935 3.03 % 3.01 % 3.01 % 3.76 % 3.76 % 2.24 % 2.24 % 2.24 % 0.74 % 1.48 % 2.22 % 2.99 % 2.56 %
1934 2.33 % 4.72 % 5.56 % 5.56 % 5.56 % 5.51 % 2.29 % 1.52 % 3.03 % 2.27 % 2.27 % 1.52 % 3.51 %
1933 -9.79 % -9.93 % -10.00 % -9.35 % -8.03 % -6.62 % -3.68 % -2.22 % -1.49 % -0.75 % 0.00 % 0.76 % -5.09 %
1932 -10.06 % -10.19 % -10.26 % -10.32 % -10.46 % -9.93 % -9.93 % -10.60 % -10.67 % -10.74 % -10.20 % -10.27 % -10.30 %
1931 -7.02 % -7.65 % -7.69 % -8.82 % -9.47 % -10.12 % -9.04 % -8.48 % -9.64 % -9.70 % -10.37 % -9.32 % -8.94 %
1930 0.00 % -0.58 % -0.59 % 0.59 % -0.59 % -1.75 % -4.05 % -4.62 % -4.05 % -4.62 % -5.20 % -6.40 % -2.66 %
1929 -1.16 % 0.00 % -0.58 % -1.17 % -1.16 % 0.00 % 1.17 % 1.17 % 0.00 % 0.58 % 0.58 % 0.58 % 0.00 %
1928 -1.14 % -1.72 % -1.16 % -1.16 % -1.15 % -2.84 % -1.16 % -0.58 % 0.00 % -1.15 % -0.58 % -1.16 % -1.15 %
1927 -2.23 % -2.79 % -2.81 % -3.35 % -2.25 % -0.56 % -1.14 % -1.15 % -1.14 % -1.14 % -2.26 % -2.26 % -1.92 %
1926 3.47 % 4.07 % 2.89 % 4.07 % 2.89 % 1.14 % -1.13 % -1.69 % -1.13 % -0.56 % -1.67 % -1.12 % 0.94 %
1925 0.00 % 0.00 % 1.17 % 1.18 % 1.76 % 2.94 % 3.51 % 4.12 % 3.51 % 2.91 % 4.65 % 3.47 % 2.44 %
1924 2.98 % 2.38 % 1.79 % 0.59 % 0.59 % 0.00 % -0.58 % -0.58 % -0.58 % -0.58 % -0.58 % 0.00 % 0.45 %
1923 -0.59 % -0.59 % 0.60 % 1.20 % 1.20 % 1.80 % 2.38 % 3.01 % 3.61 % 3.59 % 2.98 % 2.37 % 1.80 %
1922 -11.05 % -8.15 % -8.74 % -7.73 % -5.65 % -5.11 % -5.08 % -6.21 % -5.14 % -4.57 % -3.45 % -2.31 % -6.10 %
1921 -1.55 % -5.64 % -7.11 % -10.84 % -14.08 % -15.79 % -14.90 % -12.81 % -12.50 % -12.06 % -12.12 % -10.82 % -10.85 %
1920 16.97 % 20.37 % 20.12 % 21.56 % 21.89 % 23.67 % 19.54 % 14.69 % 12.36 % 9.94 % 7.03 % 2.65 % 15.90 %
1919 17.86 % 14.89 % 17.14 % 17.61 % 16.55 % 14.97 % 15.23 % 14.94 % 13.38 % 13.13 % 13.50 % 14.55 % 15.31 %
1918 19.66 % 17.50 % 16.67 % 12.70 % 13.28 % 13.08 % 17.97 % 18.46 % 18.05 % 18.52 % 20.74 % 20.44 % 17.26 %
1917 12.50 % 15.38 % 14.29 % 18.87 % 19.63 % 20.37 % 18.52 % 19.27 % 19.82 % 19.47 % 17.39 % 18.10 % 17.80 %
1916 2.97 % 4.00 % 6.06 % 6.00 % 5.94 % 6.93 % 6.93 % 7.92 % 9.90 % 10.78 % 11.65 % 12.62 % 7.64 %
1915 1.00 % 1.01 % 0.00 % 2.04 % 2.02 % 2.02 % 1.00 % -0.98 % -0.98 % 0.99 % 0.98 % 1.98 % 0.92 %
1914 2.04 % 1.02 % 1.02 % 0.00 % 2.06 % 1.02 % 1.01 % 3.03 % 2.00 % 1.00 % 0.99 % 1.00 % 1.35 %

Next, here are some great tables presented by Ben Casselman on FiveThirtyEight Economics:

In 1988, the typical American adult was 40 years old, white and married, with a high school diploma. If he was a man, he probably worked full time. If she was a woman, she probably didn’t.

Twenty-five years later, Americans are older, more diverse and more educated. We are less likely to be married and more likely to live alone. Work is divided more evenly between the sexes. One thing that hasn’t changed? The income of the median U.S. household is still just under $52,000.

The government’s release last week of income and poverty data for 2013 brought renewed attention to the apparent stagnation of the American middle class — not just since the financial crisis hit six years ago this month, but for much of the decade that preceded the crash. The report showed that the economic recovery has yet to translate into higher incomes for the typical American family. After adjusting for inflation, U.S. median household income is still 8 percent lower than it was before the recession, 9 percent lower than at its peak in 1999, and essentially unchanged since the end of the Reagan administration.

“As a country,” New York magazine’s Annie Lowrey wrote Friday, “we peaked in the late 1990s.”

There’s little doubt that the past 15 years have been hard ones for the middle class. But median income isn’t necessarily the best way to show that. The problem is that changes in median income reflect several trends all jumbled together: the aging of the population, changing patterns in work and schooling, and the evolving makeup of the American family, as well as long- and short-term trends in the economy itself. Understanding the state of the American middle class requires digging a bit deeper than median income alone.

Let’s start with what median income does measure: the amount of money earned by the household at the midpoint of the U.S. income distribution — half of households make more, and half make less. Journalists, including me, often refer to it as the amount earned1 by the “typical household,” which is true as long as we’re talking about a moment in time. But as soon as we start talking about change over time, median income becomes trickier to interpret.

casselman-feature-income-tableTo understand why, imagine a simple model in which there are five people. The poorest makes $30,000 a year and the richest $70,000, with the other three evenly distributed in between. The group’s median income would be $50,000. The next year, everyone gets a $10,000 raise — except the richest person, who retires and starts drawing a $40,000-a-year pension. Most people see their income go up, but the median remains unchanged.2

This scenario is oversimplified, but it illustrates a trend. On average, people’s earnings rise in their 20s and 30s, peak sometime in their late 40s or early 50s, and then decline when they retire.3 All else equal, the retirement of the baby boom generation should push down the overall median income.

Aging, at least, is fairly easy to control for. We can look, for example, at how much money people earned at a given point in their lives. The charts below show median income over time for specific ages.4 The details differ, but the trend is similar: Incomes generally rose until 2000 and have generally fallen since then. The aging population certainly isn’t helping the overall decline in incomes, but it isn’t causing it either.5

casselman-feature-income-1

But aging isn’t the only trend that could be skewing the median. Fewer Americans are getting married, and they’re having fewer children. That means the size of the typical U.S. household is shrinking — which is important, because it costs more to support more people. There’s a big difference between an individual living on $50,000 a year and a family of four doing the same. To account for this, economists often adjust incomes for household size, scaling up the income for the person living alone and adjusting it down for the family of four.6

As the chart below shows, adjusting for household size makes a significant difference before 2000. But since then, the trends line up closely.7 The shrinking U.S. household doesn’t explain the past 15 years of stagnation.

casselman-feature-income-2

The U.S. is changing in other ways, too: by race, by education, and by the region where they live. But almost no matter how we break down the population, incomes are down since 1999. Moreover, most groups saw little if any improvement in income between 1999 and 2007, before the recession began.

casselman-feature-income-3

Another problem with focusing on median income is that it only tells us about households in the middle — it doesn’t reveal anything about households elsewhere in the income distribution. And middle class incomes haven’t just been stagnant. The middle class itself has also been shrinking.

In 1970, 55 percent of U.S. income was earned by households in the middle 60 percent of the income distribution. More than half of households were in what Pew Research Center has labeled the “middle tier” of households (those earning between two-thirds and twice the median income). In 2013, both numbers had fallen to about 45 percent. In a 2012 report, Pew researchers called the 2000s “the lost decade of the middle class.”

casselman-feature-income-4

One common definition of the American dream is the belief that each generation will do better than the one before. By that measure, the dream is fading. Take the generation born in 1970. In early adulthood, these Americans outearned their parents, those born in 1950. But their gains stalled in the 2000s, when they were in their 30s. Now in their 40s, their earnings have fallen behind those of their parents at the same stage in their lives.

casselman-feature-income-5

The picture painted by all these figures is the same: The middle class was struggling in the 2000s despite an economy that was, by conventional measures, strong. The recession turned stagnation into an outright decline, and the recovery has thus far been too weak to claw back much of what was lost.

Now let’s FLASHBACK to 1970 to look at some of the Prices and Wages for that year, before I get Ranting on this one:


Economy
President:  Richard M. Nixon 
Vice President:  Spiro T. Agnew 

Population: 
205,052,174 
Life expectancy:  70.8 years 

Dow-Jones 
 
High:  842 (RE Note: Dow Jones today @ 16, 945! 2000% Increase there!)
Low:  669 

Federal spending: 
$195.65 billion (RE Note: 2014 @ $3.77 TRILLION!  Also around 2000% increase!)
Federal debt:  $380.9 billion  (RE Note: CHUMP CHANGE! Da Fed issues that much out every 3-5 months or so now!)
Inflation:  6.5% 
Consumer Price Index:  38.8 
Unemployment:  3.5% 
Prices
Cost of a new home:  $26,600.00 
Cost of a new car: 
Median Household Income:  $8,734.00  (RE Note: 2014 MHI $50K.  Only 600% Increase!  How come J6P doesn’t get QUADRUPLE digit inflation in wages here? Triple Digits is for LOSERS!)
Cost of a first-class stamp:  $0.06 
Cost of a gallon of regular gas:  $0.36 
Cost of a dozen eggs:  $0.62 
Cost of a gallon of Milk:  1.15 

 

What you do need to realize is that Deflation is much more feared than Inflation by anyone in charge of credit creation.  In a deflationary scenario, you can’t issue credit and money essentially disappears from circulation.  Despite the fact the CBs are trying to reinflate through Central credit creation, the credit is not further made available to downstream Biznesses and at the consumer level is near strangulation now except for some specific Goobermint guaranteed Bubbles like Student Loans.  Further consumption cannot occur without further credit being made available at the bottom of the credit food chain, and that simply is not occuring.

With that in mind, and without further ado, today’s Rant tracking Inflation from the 1970s to today. 🙂

Snippet:

http://www.atlantarex.com/urban-pizza-pub-for-sale-in-atlanta/urban-pizza-bar-for-sale-atlanta-pizza-dough.jpg…What got me going on this today was I made a Stop at Fred Myer to pick up a fresh loaf of French Bread to go with my St. Andre Cheese I picked up last week and froze a few of them at $5 each. Very nice cheese this one. As I walked by the Deli Hot counter to the Artisan Bread section, I bypassed a NEW offering, they are now offering By-the-Slice Pizza, just like the old Pizzerias in New York Shity had out when I was a teenager on my way to or from Stuyvesant, or out for Lunch.

In those days, these Pizzas were Hand Tossed by real old Italian Immigrants, or their first generation sons taking over the Biz in many cases. The Tomato Sauce used was different from Pizzeria to Pizzeria, often made from scratch by Grandma from tomatoes grown in the backyard of their Queens tract house. The Slices were a foot long, coming from 24” diameter Hand Tossed Full Pizzas. A slice cost 15-25 cents over those years in the 1970s.

Fast forward to the Fred Myer Pizza Counter. Nobody is Hand Tossing the Pizza Wheel, they cook the pizzas up from the same ones they sell uncooked in boxes in the refrigerated counter. They have a fairly generous supply of cheese and other ingredients dropped on them, but they are 18” wheels, so smaller slices at around 9 inches, which is impressive for a Porn Star but small for a slice of Pizza. Price for one slice of this Pizza? $2….

For the rest, LISTEN TO THE RANT!!!

2 Responses to Inflation, Deflation & FOOD!

  • St. Roy says:

    Hi RE:

    Interesting and useful FBFDR today. As you know, I live in a small beach town on the West Coast of Mexico. Food is cheap here and almost free (by US standards) if you shop the mercado at the end of the day before the fresh fish and produce shops close and the unsold nutrition is carted off to feed the pigs. Also, delicious mangoes, bananas and carissa (natal plums) are free to pick in-season everywhere as they are common landscape plants. For amusement and to allay boredom, my wife and I sometimes try to see how cheap we can eat for a week consuming only wholesome comida. We can easily do it for under $20 which includes two nights out at a neighborhood lady’s chicken tamale stand ($2 for both of us with horchata). We have no transportation costs unless we account for wear and tear on the knees (we are now horrified when visit relatives in CA and are reminded of how the car-centric culture lives).

    PS: Feeling sorry for you for having to pay so much more for even on-sale foods in Alaska, I made another small donation to the DSD. Keep up the good rants. It’s my favorite entertainment.

  • Pingback: Doom (2nd November 2014 edition) | vulture of critique

Leave a Reply

Your email address will not be published. Required fields are marked *

Knarf plays the Doomer Blues

https://image.freepik.com/free-icon/musical-notes-symbols_318-29778.jpg

Support the Diner
Search the Diner
Surveys & Podcasts

NEW SURVEY

Renewable Energy

VISIT AND FOLLOW US ON DINER SOUNDCLOUD

" As a daily reader of all of the doomsday blogs, e.g. the Diner, Nature Bats Last, Zerohedge, Scribbler, etc… I must say that I most look forward to your “off the microphone” rants. Your analysis, insights, and conclusions are always logical, well supported, and clearly articulated – a trifecta not frequently achieved."- Joe D
Archives
Global Diners

View Full Diner Stats

Global Population Stats

Enter a Country Name for full Population & Demographic Statistics

Lake Mead Watch

http://si.wsj.net/public/resources/images/NA-BX686_LakeMe_G_20130816175615.jpg

loading

Inside the Diner

Human rights and Palestinian solidarity activists frequently mention violations of international law and the commission of war crimes by the state of Israel. The IPSC National Coordinator Kevin Squires took a look at some of these offences in detail fo...

Last week, the world was informed of yet another expansion of Is...

In June 1967, Israel defeated the armies of Egypt, Jordan and Syria, resulting in the Palestinian 'Naksa' For the past ...

The German telecoms regulator urged parents to destroy children's smartwatches A German regulator has banned the sale of smartwatches aimed at chi...

After spending nearly half a century in prison, Charles Manson has passed away at the age 83...

Diner Twitter feed

Knarf’s Knewz

In June 1967, Israel defeated the armies of Egypt, [...]

The German telecoms regulator urged parents to des [...]

After spending nearly half a century in prison, Ch [...]

Quote from: David B. on November 19, 2017, 09:58:0 [...]

Quote from: knarf on November 19, 2017, 05:29:28 A [...]

Diner Newz Feeds
  • Surly
  • Agelbert
  • Knarf
  • Golden Oxen
  • Frostbite Falls

Doomstead Diner Daily 11/20[html]  [...]

The Zombie Diseases of Climate Change[html]The Zom [...]

Doomstead Diner Daily 11/19[html] [...]

Quote from: agelbert on November 18, 2017, 11:47:2 [...]

Quote from: Surly1 on November 18, 2017, 03:18:55 [...]

Medieval Manuscripts: Bread in the 15th-centuryNOV [...]

PROOF that there is NO organized Christian Church [...]

Quote from: agelbert on November 18, 2017, 01:10:0 [...]

In June 1967, Israel defeated the armies of Egypt, [...]

The German telecoms regulator urged parents to des [...]

After spending nearly half a century in prison, Ch [...]

Quote from: David B. on November 19, 2017, 09:58:0 [...]

Quote from: knarf on November 19, 2017, 05:29:28 A [...]

Now there's a soul with some serious karma to [...]

Quote from: Golden Oxen on November 16, 2017, 11:4 [...]

Quote from: Golden Oxen on November 16, 2017, 11:0 [...]

Charles Manson, leader of the murderous Manson Fam [...]

Alternate Perspectives
  • Two Ice Floes
  • Jumping Jack Flash
  • From Filmers to Farmers

The Latest Sign of the Coming Apocalypse By Cognitive Dissonance   On occasion Mrs. Cog accuses me o [...]

Taking a Pass on Gas – Wood Preferred By High Desert Homesteading   We recently bought a 22 year old [...]

Small Town Mountain Living by Cognitive Dissonance   I'm a small town boy. Born and bred small [...]

An Act of Pure Evil By Cognitive Dissonance   This is being written the day after the mass shooting [...]

This and That Vol. 2 – Talking Your Book By Cognitive Dissonance   I don’t know what’s going on in y [...]

Event Update For 2017-11-18http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2017-11-17http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2017-11-16http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2017-11-15http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2017-11-14http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

From Filmers to Farmers is re-launched on the astounding open source blogging platform Ghost! [...]

The blogging scene is admittedly atrocious. Is there really no option for a collapse blogger to turn [...]

Sure, the Svalbard Global Seed Vault is out to conserve our agricultural diversity, but who exactly [...]

Daily Doom Photo

man-watching-tv

Sustainability
  • Peak Surfer
  • SUN
  • Transition Voice

The Diamond Cutter at Apache Pass, Part 3: Vajracchedikā Prajñāpāramitā"The things that are seen are temporal; the things that are unseen are eternal. — Saul of Tarsi [...]

The Diamond Cutter at Apache Pass, Part 2: Passage to India"Blindfolded, he spoke eloquently on the nature of emptiness."This is the second installme [...]

The Diamond Cutter at Apache Pass, Part 1: Cut the Tent"When we move, or we consume foods from outside our region, we are thwarting adaptation. Our ep [...]

Acceleration"We need to get to above-the-line climate solutions with the same urgency as beach communities [...]

Greening Apocalypse California"At some point the marble will fall into a warmer domain of equilibrium."This is one of th [...]

The folks at Windward have been doing great work at living sustainably for many years now.  Part of [...]

 The Daily SUN☼ Building a Better Tomorrow by Sustaining Universal Needs April 3, 2017 Powering Down [...]

Off the keyboard of Bob Montgomery Follow us on Twitter @doomstead666 Friend us on Facebook Publishe [...]

Visit SUN on Facebook Here [...]

Americans are good on the "thoughts and prayers" thing. Also not so bad about digging in f [...]

In the echo-sphere of political punditry consensus forms rapidly, gels, and then, in short order…cal [...]

Discussions with figures from Noam Chomsky and Peter Senge to Thich Nhat Hanh and the Dalai Lama off [...]

Lefty Greenies have some laudable ideas. Why is it then that they don't bother to really build [...]

Democracy and politics would be messy business even if all participants were saints. But America doe [...]

Top Commentariats
  • Our Finite World
  • Economic Undertow

If 1080 poison were to be added to McDonalds and KFC .... that would solve a lot of problems... [...]

The Mad Max Zombie Apocalypse scenarios presume the shutdown of everything overnight. TPTB know what [...]

He has left out the only reason that matters..... we are running out of cheap to produce energy. He [...]

Yes excellent. James Cameron should do a follow up to Avatar... in this production the animals of th [...]

That is US military spending vs the rest of the world.... [...]

Keeping Up Appearances now UP on the Diner Blog. Sporting a brand spanking newly designed Triangle o [...]

If what is going to happen is that the entirety of the rest of the world is going to collapse first [...]

Jim Rickards is saying that every time that the Chinese devalue their currency that there is a drop [...]

I suspect that the "doom/collapse" that we all anticipated, dare I say hoped for, was the [...]

"All we doomers have is coming on a decade of following internet blogs, and going to our dead e [...]

RE Economics

Going Cashless

Off the keyboard of RE Follow us on Twitter @doomstead666...

Simplifying the Final Countdown

Off the keyboard of RE Follow us on Twitter @doomstead666...

Bond Market Collapse and the Banning of Cash

Off the microphone of RE Follow us on Twitter @doomstead666...

Do Central Bankers Recognize there is NO GROWTH?

Discuss this article @ the ECONOMICS TABLE inside the...

Singularity of the Dollar

Off the Keyboard of RE Follow us on Twitter @doomstead666...

Kurrency Kollapse: To Print or Not To Print?

Off the microphone of RE Follow us on Twitter @doomstead666...

SWISSIE CAPITULATION!

Off the microphone of RE Follow us on Twitter @doomstead666...

Of Heat Sinks & Debt Sinks: A Thermodynamic View of Money

Off the keyboard of RE Follow us on Twitter @doomstead666...

Merry Doomy Christmas

Off the keyboard of RE Follow us on Twitter @doomstead666...

Peak Customers: The Final Liquidation Sale

Off the keyboard of RE Follow us on Twitter @doomstead666...

Collapse Fiction
Useful Links
Technical Journals

Changes in climate because of global warming during the 20th and 21st centuries have a direct impact [...]

This paper evaluates contributions to global temperature anomalies from greenhouse gas concentration [...]

In Finnish Lapland, reindeer herders’ activity is strongly dependent on the surrounding natural envi [...]

Urban air quality in most megacities has been found to be critical and Kolkata Metropolitan City is [...]

Follow on our http://www.doomsteaddiner.net/forum/