SINCE the folks who read this column are also the people who have to go to the store each week, they are really the experts on inflation. And whenever I write a column about price increases – like I did last Monday – readers always have a lot to say.
Here are some of the letters I received in the last few days in response to my rather strong assertion that Washington is understating inflation by a lot.
From New York:
“You are right on target about inflation. Compare any grocery ads of two or three years ago and today and you’ll see,” writes M.W., before giving a long list of cold cuts prices that have syrocketed.
My Answer: You don’t understand. The government says that when Boar’s Head ham gets up to $7.19 a pound you are supposed to switch to cheaper stuff. That’s how they – and you – keep inflation down.
Eventually you might be making cold cuts like the folks on “Survivor” did, but, heck, you’ll still be making meat sandwiches.
On top of that, Wall Street says food and energy costs don’t matter. So stop driving to the deli and the impact of inflation will be less.
From Oly, Wash.: “Just a quick note to tell you that your column was very well received here in the hinterland. Not only myself but several business acquaintances who happened to be down at the Spar restrautant – having a traditional Spar Mess breakfast of eggs, potatoes, gravy, sausage and a few bits of smoked salomon dumped on hard toast – were quite taken with it.
“As a bit of info for you, local price inflation seems to be running about 11 to 15 percent depending on whether it’s service (trash pickup is up 11 percent) or goods (local hair cutter says all his products are up 15 percent.)
“Personally I can say that I just filled my propane tanks at 97 cents per gallon, which is up 33 cents over last summer’s price.
“Gotta love the media … the total lack of coverage of the issue means that either they are lackey stooges of their corporate masters, or they have the newsgathering instincts and general intelligence of a common garden slug.”
Answer: Hey, lay off the press! It’s easier for journalists to quote from government liars than to look at their own grocery bill. And, by the way, you really shouldn’t eat that big of a breakfast.
From Miguel somewhere on the Internet “… Guess it’s really fortunate that the price of computer power keeps coming down. I’ll have to buy about 20 computers to offset (other price increases) so my purchasing power doesn’t diminish and the Consumer Price Index will show no change.”
Answer: As you know, the government claims computer prices are coming down — which they really aren’t – because today you can buy a more powerful machine at the same price that a weaker one cost last year. That, in the land of bureacracy, is a price decrease. And even if you don’t happen to be buying a computer, it’s supposed to bring down the effect of inflation on you.
And you might also be surprised to learn that other products – like video cameras – will also be treated to these same kind of magical price reductions in future government numbers.
So, technically, if you stop eating, drinking, driving and became a nudist you’d really make a dollar stretch, if you filled you home with electronic equipment.
From Ojada: “I learned as a young bond salesman many years ago to trust NO number from Washington, D.C., including time and temperature.”
Answer: I’d believe them on the time, but I would check before taking their word about a.m. or p.m.
Not a single reader sent me a note saying that prices are declining.
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