Why do the “official” numbers on food inflation state it’s gone up by tiny amounts like 8%, 19%, 11%, etc. but most of the foods I see has gone up by a minimum of 50%, 100%, 80%?

Question

Why do the “official” numbers on food inflation state it’s gone up by tiny amounts like 8%, 19%, 11%, etc. but most of the foods I see has gone up by a minimum of 50%, 100%, 80%?

In: Economics

Answer 1

That’s easy: the official inflation rate is not the real rate. This is done so that they don’t have to officially cut Social Security. Think of it this way; if my official inflation rates is 20% but it’s at declared 7%. Then the differential is 13%. If I do this for a decade, then your $1500 check in 10 years is going to spend like a $400 check. That is how they deal with Social Security. It is also how they deal with making sure that everyone pays taxes. Only 20% of people in the US are net taxpayers. So whenever they issue funding for non-budgetary spending to Israel or Ukraine, or a new magical thing. They’re really just inflating the currency and making you pay. You just happen to see it when you buy your food. This is the consequence of not being on the gold standard and allowing the government to have a central bank.

So imagine your government and it becomes very difficult for you to wage perpetual war or issue handouts to the poor or force the poor to pay for handouts to the upper middle class, in terms of student loan forgiveness. Everytime you want to do that, you’d have to go before both houses of Congress and get the president to sign it. do you think that you be voted out of office if you’re constituents didn’t want you to have perpetual war or exploiting the poor to help the upper middle class? Why bother to do any of this? Just simply print more money and fund it and don’t call it a budgetary item.

Imagine if you had to pass a tax to fund the Ukraine war. How popular would that be? We’re going to raise the income tax rate by 3% this year to fund the Ukraine war, and then another 2% for the Israeli war, and another 2% for student loan forgiveness, and 2% to fund illegal immigration settling. You would be voted out so fast and make your head spin. But remember that half the population is under 90 IQ and 75% under 100 IQ. Only those over 115 IQ can even grasp the concept of what’s really going on with inflation and taxes.

Have you ever wondered why the inflation won’t stop in the United States right now? That’s because they keep printing money to pay for student loans, Israel, Ukraine, and mythological climate catastrophe funding.