The Real Middle Class Squeeze(condensed from editorial, BUSINESS WEEK magazine aug 2, 2004)
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...in the core , inflation is rising at only 1.9% annually, but americans don't live in the core, most live in the middle. note that the core inflation rate does not include rising energy or food prices. taxes don't exist in the core either ! a squeeze is under way, in which higher prices for many key goods and services are outrunning rising wages and incomes. from 2000 to 2004 median family incomes are up 8%, but ... health-care premiums are up 49%, tuition at a four-year college is up 40%, property taxes are up 30% and gas prices are up 23%.
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so if you are wondering why your money isn't going quite as far as it did, here is at least part of the answer. in case you are wondering, BUSINESS WEEK is probably one of the most respected business magazine in the united states.
I always wondered why the reality did not jive with the spin.
eb : that should be part of the answer ! mrs h has for some time been complaining about rising prices in canada. of course, i knew better; i would read the latest inflation statistics from statistics canada (a gov't agency) to her and say : 'what are you talking about; don't you read what stat canada says ?' ... ... well, i've had to fess up (i've been forgiven because i was 'misled') ! lucky me. hbg
