2013 Economic Considerations – Low Inflation? Don’t you Believe It!
Virtually every article that is published about inflation implies that it hasn’t been an issue in the United States. If you look at how prices have affected the typical family in the United States, there is ample evidence that inflation is having a serious impact on the average American. Prices have gone through the roof during this past year, despite all the low reports on inflation. What’s surprising is that very few people seem to be complaining about it. This is surprising when you consider that the very same groups that received hundreds of billions in bail-out money, that we as taxpayers paid for, are the very same groups putting the squeeze on us. Instead of accepting the propaganda that is being distributed by politicians and the media, we all need to look at the reality of the situation and collectively figure out how to do something about it.
Consider the following:
- Groceries– Anyone that visits grocery stores knows that food costs have exploded.
- Payroll taxes -At the beginning of the year, everyone that works saw 2% of their income disappear when payroll tax forgiveness legislation wasn’t extended. Compare the taxpayer’s situation with the government’s budget, which is still increasing substantially every year. How come the government doesn’t have to tighten its belt?
- Small business tax– if you own a small business, the contribution for payroll taxes also increased earlier this year, leaving lessmoney for small business owners.
- The cost of owning or renting real estate– Everyone has to have a place to live. The prices associated with owning and even renting real estate have increased by double-digits in recent years, and they are expected to climb again this year.
- Property taxes– In most areas, because real estate values have increased, property taxes paid by owners of residential property have increased, affecting the monthly or annual cost for every homeowner.
- Homeowners insurance– Redistricting of FEMA flood maps and the cost associated with recent disasters like hurricane Sandy have dramatically increased homeowners’ insurance costs, despite the fact that the maps won’t be redrawn in some cases for another couple of years. This raises the question; are insurance companies are acting appropriately?
- Gas prices– There’s no question about the motivations of oil companies as prices have increased despite a reduction in the per barrel cost of crude oil and an abundant supply. With oil companies enjoying record profits, excuses about the crisis in the Middle East and refinery issues just don’t cut it anymore.
We’re experiencing rapidly rising costs with limited salary increases, while corporations and the wealthy enjoy record profits, in some cases as a result of huge bail-outs thanks to the American taxpayer. In part two of our concerns about inflation, we’ll look at how inflation is likely to impact the average American in 2014, and beyond.
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