Economic ‘misery’ more widespread
Americans are feeling a lot more economic pain than the government’s official statistics would lead you to believe, according to a growing number of experts.
They argue that figures for unemployment and inflation are being understated by the government.
Part of the disconnect may be due to the fact that nondurable goods, such as food and gasoline, makes up only 12% of CPI [Consumer Price index].
In addition, food and energy prices are eliminated from the so-called core CPI, which many economists tend to focus more closely on because they claim food and gas prices are volatile.
But food and energy costs are a very important part of household budgets. And those prices have been skyrocketing: Gas prices were up about 21% over the 12 months ending in April.
The CPI showed only an 11% rise in home ownership costs from 2002 through 2006, a time that the National Association of Realtors reported that existing home prices soared 34%.
Bill Gross, the manager of Pimco Total Return, the nation’s largest bond fund, refers to the CPI as a “con job” that deliberately understates the price pressures faced by Americans in order to keep Social Security payments and other government costs pegged to the index unduly low.
Finally, there’s the unemployment rate. It was at a relatively low 5% in April. But according to Williams’ Web site, ShadowStats.com, the actual rate may be between 8% and 12% if you use a more accurate reading of those out of work.
Even the government’s own numbers show there are many unemployed people not showing up in the unemployment rate. The official reading does not include 4.8 million people who want to work but haven’t found a job, for example.
I have to agree with a lot of what is being said,i i’ve always felt that the measures used by the government are intended to sugarcoat the problems facing the country
