From USA TODAY / CNBC:
…A special index created by the Labor Department to measure the actual cost of living for Americans hit a record high .in February, according to data released Thursday, surpassing the old high in July 2008. The Chained consumer price index, released along with the more widely-watched CPI, increased 0.5% to 127.4, from 126.8 in January. In July 2008, just as the housing crisis was tightening its grip, the Chained consumer price index hit its previous record of 126.9…
Still, states will be cutting back services drastically this year at the very same time they are raising taxes in order to close enormous budget deficits and avoid a muni-bond defaults crisis. So while it may be the missing link to a perfect cost of living measure, one can assume that Americans will be paying more for unquantifiable services such as police enforcement and education, but getting them at a lesser quality….
Bottom line: The cost of living for Americans is now above where it was when housing prices were in a bubble, stock prices at a record, unemployment low and consumer confidence was soaring. Something has gotta give…
Click here to read the full article.
EDITOR: Corporate profits are at record high. Earnings for the top 0.05% soaring. Middle class earnings remain static now for over three decades. Do we see a relationship here?
