Who Inflation Hurts the Most

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The biggest problem is a double-edged sword - loonger life spans. When Social Security was enacted in the 1930s, the average life expectancy was 67, so people who retired at 65 were expected to live just 2 years on the system, on average. Today, the average life span is over 80, and rising rapidly as new drugs and medical procedures prolong life. People who arfe 75 today look and feel like people did at 50 in the WWII years. That process is expected to continue. The forecast for life-expectancy for the generation just starting kindergarten is 120-140! That could not have possibly been anticipated, since life expectancy only rose from 445 to 46 between 1800 and 1900. The rise from 46 to 80+ today occurred since then. The consequences are profound and realistically mean that most people cannot possibly stop working, for financial reasons, unless they're seriously disabled. There is no answer to this dilemna, and it's ewven worse in Europe, where western countries have such low birth rates, they are gradually ceasing to exist as the nations they were 75 years ago. By 2050, a population forecast for Western Europe showed that immigrants from the Middle East would represent 40% of the population. That's because the average births-per-woman in their culture is 6.9, while it's about 1.0 in Italy, and 1.2 to1.4 in most of the rest of the countries. The "replacement rate" is 2.1, so entire cultures are dying off, literally. The U.S. has an artifically high birth rate of 2.6, because so much of it is with new immigrants, not born-here children, so Hispanics represent almost 25% of the population and Asians %s are growing rapidally also. So, the complexion of the U.S. will have changed more between 1970 and today, than it did in the first 200 years as a Nation. And with India and China representing 2.5 Billion people (1/3 third of the World), and a middle class expected to triple in size just by 2020, their consumption of energy and middle class products is causing enormous disruptions to the World economy, and it won't stop. So, as Bob Dylan put it in the 1960s "...the times, they are a changing..."

Gregory Parks of CA 9:34PM July 12, 2011

Thank God you are both fit enough to go back to work. My Mom is 64, has fibromyalgia and lives on just $800 month. She would love to return to work, but, due to her fibromyalgia, the doctors put her on steroids which has caused her irreversible damage resulting in multiple hospitalizations in the last few years, breathing difficulties and a lot of weight gain. My mom has always been health conscious, maintained her weight and worked hard. Now, through no fault of her own, she has next to nothing. My dad died several years ago and b/c he was not old enough and had not put in enough years with the company, my mom lost out on his pension. I wish I could help her, but, I am struggling to pay my own bills, what with being out of work for over a year (and no welfare or unemployment to fall back on) and trying to help my sister, who is an unemployed single mom, plus my unemployed single friend who lost everything. Being young really sucks right now unless you have family with money to fall back on. It is really bad when your family is hoping they can depend on you and you have rent to pay plus student loans and you still can't get a job. I would move if I had the money and would love to grow my own veggies, but, I live in an apt with no way to plant anything. Kudos to you for thinking of such a thing. Again, appreciate your health and the fact that you can go back to work even if you feel like you shouldn't have to. I know plenty of senior people older than you who would be thrilled to get any job these days. And many of these people are degreed. Also, times have really changed. I am sure you are aware, that companies no longer match employee 401k contributions (most don't contribute anything any more), most employers pay little to no cost of the employee insurance, younger workers no longer hope for a pension when they are old enough to retire, labor unions are rapidly disappearing making job stability unreliable, jobs are being shipped overseas, etcetera etcetera. I myself and plenty of others have less than you. I know this is hard to hear and I do not mean to dismiss what struggles you do have, but, be thankful for what God has given you. It could be much much worse. Take it from someone who just watched a complete stranger try to take his life in a most dramatic way b/c he had lost everything.

cindy of MI 2:37PM July 07, 2011

Food alone has almost doubled in the last two years, let alone the skyrocketing cost of gas. They drop it a few cents, hike it 20 cents, then drop it 10 cents to make you feel like it's dropping.
Most people in this country do not have the public transportation option of those in the larger cities. No car means no work, grocery shopping, medical treatment or anything else.
The "unemployment rate" is a farce, it only shows the number of people who have recently applied for unemployment. It is actually the "Job loss rate".
It does not take into account the people who lost their jobs last week, month, year or longer who are still no longer working.
The real { as opposed to the reported } inflation rate in this country is double digit and in most things around 16-18%
Meanwhile the government has a town crier on every street corner shouting " don't worry all is well ".
Government assurances will fill your stomachs, pay your bills and make life swell for you won't they???

George Andrews of MO 1:30PM July 07, 2011

My husband and I are seniors - we were retired - but both have had to go back to working part-time minimum wage jobs to survive.
Yes, we had saved, sacrficed and basically did without in order to save for our retirement. I believe we everything possible to plan for our "Golden Years."
We raised four children, put them through school and paid our bills and taxes faithfully and owe no one. If we did not have the money, we did not spent it, we just did without. We sold our city house and moved to the country where property taxes are lower, and we could live on less and raise some of our own food. I believe we did everything within our power to be responsible and plan ahead.
According to our 2009 budget and financial planner we were looking fine for a careful and minimal spending retirement of $40,000 a year for the two of us.
Our budget does not include many, if any luxuries; no eating out, no vacations, no long distance, no cable TV and a strick budget for gas. We economize with dial up Internet, digital TV only, buying used clothing, drive a 1998 Sabaru, growing our own vegetables and raise our own eggs and our big "splurge" is $19.00 a month Netflix. We must provide our own healthcare, dental and glasses.
We had saved up $360,000 for our lifetime needs (to age 97) which also included one more vehicle purchase ($27,000,) and a new ($15,000 roof) for our home and a few likely repairs such as new furnace, new pump, well and septic etc.
But the stock market/housing crash changed everything. We lost 60% of what we saved for our retirement years and now we don't dare take anything out of our stocks and bonds or risk eroding our principal. So we are back to work at age 66 to try to make enough to live on.
Now the Governor of Michigan is going to tax our pension (that my husband worked for for 32 years)! I've come to believe that the "Golden Years" is but a myth and is no longer achievable.
Beware young people-plan ahead!

DAL of MI 8:09AM July 07, 2011

Like David of CA, rent (or mortgage) and Utilities are over 50% of my paycheck. Gas prices are going up and up (even though I hear only 5% is from the Middle Eastern Countries) Food costs for one have tripled in the last year, Car insurance continues to climb as well as health insurance, home insurance and all the other insurance one needs to have now-a-days (credit card coverage for unemployment or disabled and can't work etc.). By the time I'm done each month, I'm lucky if I have twenty dollars for unexpected bills. Forget having a 401K or retirement fund, there's nothing left.
If our government would cut their wasteful spending and stop the "perks" they continue to bestow upon themselves like paying their salaries even after they are out of office, special health care insurance not available to american citizens and the like; perhaps we would have a chance at financial security for everyone and not just those in the millionaire plus per year club.
I don't have a degree in economics; but common sense doesn't exist with our politicians and one doesn't need an economic degree to know that.
What is being done to create jobs for people? You don't have to be a rocket scientist to know that those who have exhausted their unemployment benefits and have not found new employment have all but disappeared from the government statistics. That's why the unemployment figures are lower not because of job creation. Get a grip people.

Dorothy of NJ of NJ 5:01PM May 16, 2011

The government sucks. Im tired of living under rules of the rich. Impeach Ob

Lou of UT 8:48AM April 22, 2011

Arkel,
Clearly you don't study or research economics very well. I have a bachelor's in economics so I do actually know some economics.
Look up inflation in any introductory economics book and you will see the definition itself has to do with prices as the author implies and does not explicitly involve money supply what so ever. Yes, increases in the money supply do lead to inflation if they are not matched by increases in money demand. However, such a doomsday scenario as you do is unlikely considering the new tools Bernanke has put in place to control the money supply. If you what to really understand this situation and see why things are not half as bad as you claim you need to understand how the money supply really works. I suggest you use an introduction to economics text book to learn about the money multiplier and then see how Bernanke's new tools will work to lower that, which in turns will reduce the money supply, when the time is right.
I hope you don't waste your money on gold or silver as arkel suggests.

Tim of WI 2:49PM April 05, 2011

Here's my expense list:
Rent (or mortgage) and Utilities are over 50% of my paycheck.
Surprise! Gas is already at $4.00/gal on the West Coast.
I'm riding my bicycle to work now.
Food is an easy 20%, not dining out except for my daily burger with no drink or fries.
Car insurance has gone up - not on your list.
Not much left over after misc expenses.
I am going to be heighbor soon - scoot over.

David of CA 11:19PM March 07, 2011

Our health insurance is $13,800 per year for a high deductible policy going up 18% On April 1st to $16,500. This doesn't count out of pocket expenses to reach the $2500 deductible per year etc. Therefore Health Care runs between 15 & 18% of our income depending on how many little illnesses or injuries we have per year. Are the rest of your figures this far off too?

Susan of MA 8:43AM March 07, 2011

This author is either posting propaganda or just doesn't understand economics. I study and research this stuff every single day.
The definition of inflation is the increase of the money supply. Prices increasing are a consequence of printing money.
The major reason prices are increasing is because the Federal Reserve (which is a private bank and not part of the government. Research it) is printing money out of thin air and buying Treasuries aka QE2. This is pure and unadulterated inflation. If you think things are bad now, just wait. It is going to get much much worse if the fed does not stop this insanity.
"Energy and food prices tend to be driven by external factors like weather, overseas demand, and turmoil in the Middle East, which the Fed can't do much about."
Yes, these factors do matter, but to not mention the main reason for the price increases (QE2) is foolish.
The dollar is currently collapsing in front of our eyes. People you better prepare soon because there isn't much time left.
Whether the dollar collapses is not a matter of "if", but "when".
Buy physical gold and silver coins.
If you think I'm crazy and don't want to believe me, then don't. I really don't care. You'll be crying in a few years. Trust me.
To those who want to know what's going to happen, go to this website and watch the video (you can ignore the sales pitch at the end of the video, but really listen and pay attention because it's the best breakdown of what's going to happen that I could find):
endofamerica3.com
Will you take the red or blue pill?
Good luck to all.

arkel of IA 2:03PM March 05, 2011