Make It Go Away!! Eliminating Falling Wages With The Stroke Of A Pen
The globalist Bush Administration has figured out how to respond to falling wages for the bottom 80% of Americans—stop collecting the wage data! Yep, the Bureau of Labor Statistics has announced it will no longer collect data on wages for the bottom 80% of working Americans (called “production and nonsupervisory workers”).
They will instead generate one national average wage statistic, including Bill Gates and all the other “haves”—thus hiding the declining wages of the “have nots”. The new wage statistic will also include benefits, which is misleading because if the price an employer pays for health insurance for its employees goes up, it will look like the employee’s wages went up, when in fact he/she doesn’t have any additional income.
Poof, problem solved. This is, of course, in response to rising protectionist and anti-immigration sentiments (caused by flat or declining wages) and the flat-out reluctance of the multinational elites to address it.
Same way they made the M-3 money supply problem go away. Just stop reporting it.
Same way they keep the real debt lower by not reporting the debt owed to the Trust funds.
Same way they made the inflation rate lower. Just exclude food and energy.
Smoke and mirrors.
Wow, I hadn’t heard about the inflation bit. No kidding?
quote:
“Have they changed the way they measure the rate of inflation? The CPI report in May was zero percent, excluding food and energy. If you take those things out, that is what is primarily driving up everything. What would be the real inflation rate, if you add back everything they take out?”
snip—————–
The rise in money and credit would mean higher inflation rates. Higher inflation rates would mean higher COLA adjustments, which would lead to bigger deficits.
The solution was to change the way inflation is measured. Media reports began to surface on how CPI was overstated. The real inflation rate was actually much lower according to government and Federal Reserve officials. The Senate Finance Committee appointed the Boskin Commission to study the problem and find a solution. The Boskin Commission published its final report ”Toward a More Accurate Measure of the Cost of Living,“ and submitted its findings to the Senate on December 4, 1996. The Boskin report recommended downward adjustments in the CPI of 1.1%. The CPI, which is used as the basis for COLAs to Social Security and government pensions, if lowered as recommended by the commission, would reduce future entitlement payments as well as impact other government programs. The CBO estimated that by overstating CPI by 1.1% it added $691 billion to the national debt by 2006. By then the annual deficit would rise anywhere from $148 billion to $200 billion annually by overstating the inflation rate. In effect the government was overpaying because the actual inflation rate was much lower.
The Boskin Commission recommended several changes to the CPI index which included:
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develop and publish two indexes
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abandon the fixed-weight formula for CPI goods
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change the weight of items in the index from arithmetic weighting to geometric weighting
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introduce substitutions in the index
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seasonal adjustments to account for price increases that occur on a seasonal basis, which would smooth out the fluctuations
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Reduce prices by quality improvements
The result of their implemented suggestions is the mish mash we have today, which bears no resemblance to reality. The Commissions recommendations had widespread support in the Clinton Administration, a Republican Congress and from financial luminaries such as Alan Greenspan, who was expanding the money supply at a very rapid rate as shown in the graph above.
http://www.financialsense.com/stormwatch/2005/0624.html
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Also, don’t forget the “substitution method” for calculating inflation that was put into effect
quote:
Bill Goss of PIMCO stated in October 2004, “The CPI as calculated is definitely a con job foisted on an unwitting public by government officials. The government says that if the quality of a product got better over the last 12 months that it didn’t really go up in price and in fact it may have actually gone down! In 1998 the methodology was adopted for computers – surely the biggest step backward in realistic inflation calculations. Since then, the BLS has expanded the concept to include audio equipment, video equipment, washers/dryers, DVDs, refrigerators, and of all things, college textbooks! (see poor quality textbooks). Today no less than 46% of the weight of the U.S. CPI comes from products subject to hedonic adjustments. PIMCO calculates that without them, and similarly disinflating substitution biases, Greenspan’s favorite inflation measure, the PCE, would be between 0.5% and 1.1% higher each year since 1987.
http://mwhodges.home.att.net/inflation.htm
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One estimate I read about the changes in reporting inflation stated that social security checks would be 70% higher today, had those changes over the last few decades not been made.
I would suggest that if they want to remove the “volatility” they are saying is the reason for removing food and energy from the “core rate,” that they use a rolling 12 month average for food prices and energy prices. That would take seasonal fluctuations out while keeping the rising or falling trend for the prices in and give seniors on social security a more accurate COLA increase.
By the way, that is May for 2005, not this last may, but the article is one I have that details the changes that were made in an easy to understand way.
I love it: “The government says that if the quality of a product got better over the last 12 months that it didn’t really go up in price and in fact it may have actually gone down!”
That gallon of gas I just bought is WAY more betterer than it was last year.
LeftHook,
So is this free blog!
Way more right than ever…
MD: Yep! Still free. In fact it’s over 3 times freer than is was 12 months ago!!
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I am getting sick, very sick and tired of hearing (finding out) how sick our country is becoming.
Is it cancer?
yep, afraid it is.
Is it deadly?
yep, afraid it is.
What do you do with cancer?
Burn it, cut it out and poison with biochemistry poisons.
Could we just put the patient out of his pain?
Yes, but why not put the cancer agent out of their pain.
The cancer is socialism and more and more of the American voting population is supporting it. 1/2 don’t pay income tax and thus, support representatives that give them even more social programs they think somebody else pays for.
We have voters that don’t know the Constitution, what a republic is vs. a democracy, what taxes are hidden in prices, how the debt is paid for by all workers one way or another, how our infrastructure is decaying, how our education system isn’t keeping up with other nations, etc.
You can’t have a strong nation when the voters don’t have a clue about what weakens that nation and demand the very things that do weaken it.
Right on the mark. I like hearing the brand “globalist”. Because the globalists have hijacked “our” GOP. Temporarily, that is. Globalism is just as desructive and harmful to our nation as Liberalism. The average rabid globalist believes that the concept of sovereign borders and national identity are antiquated, obsolete, passe’ concepts. The irony is that this belief is the one thing that the liberals and globalists can come together on. And we are privilidged to watch that happen right before our eyes. Our enemies have exposed themselves. Made themselves naked before us. Ha! Darvin Dowdy