Quote:
Originally Posted by birdiebill
The cost of living increase we receive through Social Security and/or pension plans is usually based on an average of common costs incurred by the common individual. They are set up to minimize the increase in fixed incomes. The cost to maintain a golf course is based on the cost of fertilizer, pesticides, herbicides, labor and fuel costs. These do not necessarily go up at the same rate as the cost of living indexes. So you cannot compare increase in cost of golf versus cost of living index.
The rates of everything from groceries to fuel to utilities to clothing to automobiles, insurance, medical care, etc usually increases annually; sometimes more that the cost of living index.
|
The problem is that the CPI is reported by the Government, which is over $22 Trillion (and rapidly growing) in debt. If they reported inflation accurately, the cost of servicing it's debt (which is directly tied to interest rates and inflation) would represent 100% of revenue, leaving nothing left for social programs, the military, ect.....Plus, social security payments would have to increase to reflect real inflation causing the program to run out of money much sooner.
Talk about the fox watching over the hen house!