Where am I wrong?
LETS SEE. pay 1998. $6.50 hour and gas was 78 cents a gallon and milk was 1.59 a gallon and bread was 55 cents a loaf. Rent was 325.00 month and health care was 7.50 a week with my corporation paying the majority with the government reimbursing them for offering them that. FAST FORWARD 10 years. pay 10.50 an hour. GAS 3.00 a gallon going to just under 3.50 this summer. Milk 4.25 gal. Bread 2.50 loaf and going up.Came into a house 10 years ago and it was 80,000.00 now values at 160,000.00. Taxes 10 years went from 2,000.00 year to 4,000.00 a year now. Thank god I have the house. Went back to apartment to see what Rent is and it is now 800.00 month. HEALTH CARE 15.75 a week. This is what caused stagflation. If you are earning 20 million a year then inflation only went up 10% in ten years and my inflation went up 200% in 10 years. AND THAT MY FRIEND IS STAGFLATION THAT IS NOW AFFECTING NOT ONLY THE WORKING POOR BUT NOW THE MIDDLE CLASS. THIS IS HOW THE FED GETS IT WRONG. THE FED AVERAGE'S THE ENTIRE PAY FOR THE COUNTRY AND THEN THE ENTIRE RAISING COST AND AVERAGES IT OUT THUS WE GET 10% INFLATION RATE FOR THE YEAR MORE OR LESS. WHAT THE FED NEEDS TO DO IS AVERAGE THE INFLATION TO JUST THE MIDDLE CLASS AND THE WORKING POOR AND THEY WOULD GET A MORE ACCURATE READING OF THE ECCOMONY. Now one of 2 things will happen either prices will have to drop to 1998 prices Major recession with stagflation or wages for the middle class and working poor will have to rise very quickly. If President bush and congress don't act and raise minimum wage then it will be a very hard recession with stagflation.Classic Ecomney 101. Does anyone out there realize if we had indexed min. wage to yearly inflation it should be about 20.00 an hour? This is why these recessions cycle about every 20 years. President Bush could become the national Hero if he acted this month and have someone in the republican congress to submit a bill to congress to get the permanent tax cuts through congress by just bitting the bullet and craft a bill to state that permanent tax cuts to min. wage to 4.00 an hour effective in one month with a 2.00 a year increase until it reaches what min wage should be indexed to inflation. Then tie min wage to a yearly increase to its inflation ( middle and lower class). This way the corporations can keep and invest most of their money and yet the hard working people who keep the cooperations running will be able to afford to buy products from the cooperations. If we want to keep a quality of live then we need the wages. I know corporations say the labor will be to high but with the savings they will receive from taxes will more than exceed what they pay out for wages. We can no longer sight other country's labor because we can't compete with 3.00 a day and retain our life style. Why don't we give a hand up to those country's and in free trade raise their pay gradually towards our pay? This way as they have more to spend we will have more to sell them. Just my take on the situation on this mess.