Hyperinflation has been the American way of life but someone, somewhere doesn't want us to realize it.
We hear much talk about hyperinflation these days but I contend that hyperinflation has been at work throughout my entire adult life from when I graduated high school in 1995 up to today. The cpi makes us think wages have stayed even with inflation but do we really think tracking the price of electronic gadgets has anything to do with the cost of living? The things that are a much higher priority than electronics such as housing, education, healthcare, and good jobs aren't reflected in the cpi. I start my first teaching job this summer as a high school math teacher and will earn roughly $34,000 a year. A modest starter home in my area goes for $100,000 so you could say the pay is low but so is the cost of living in the area. Using the conventional rule of doubling your mortgage payment to include insurance, utilities, and upkeep, do you feel my income will support home ownership? I say that home ownership combimed with the other typical expenses of life would leave me little to no money leftover. Could I both buy a home and hope to get ahead financially on my income? Those of you who are older, ask yourself if during your early years of working, a first year teacher could reasonably expect to be able to afford a small home and get ahead financially. I think this kind of comparison illustrates how much the purchasing power of a typical working American has declined over the last couple of decades.