And now there is a need for the “poor” inflation indicator
Very significantly, this step of preparing a CPI for the less well off has been an initiative coming from the economic sector itself, that the United States that is the first economy on the planet ( not the first socioeconomics ), and that at the same time presents some lacerating exclusion rates social often alarming. These are especially serious since the last Great Recession, although they have always been unfortunately a classic of American socioeconomics compared to other models of “medium” (and not artificial “average” arithmetic) such as Europeans. So, as the late American publication Quartz reported,Given the macroeconomic need, in the US they have been forced to take out this new CPI “for the poor” , which is only a grim demonstration that there is something that does not work in the cradle of capitalism (which was once) popular, and whose Refounding cannot be delayed anymore.
According to statistics from the consumer spending survey of the Federal Bureau of Labor Statistics, the inflation of an average CPI basket in the US is almost 0.37 basis points higher for the humblest 20% in the socioeconomic scale, which for a low Inflation around the official target of 2% are percentage (very) higher words. As Quartz also pointed out in the news linked before, in addition, that inflationary spiral only generates even more inequality, since at the same income and the same lack of rights to state aid, there are new middle class population strips that are falling into effective poverty, when transferring the threshold of what should really be measured: the poverty threshold in terms of purchasing power of your salary for your own average shopping basket, a basket increasingly reduced compared to the “official” for that inflation differential.
So, with inflation or deflation, with family or business budgets, with public or hidden taxes, whatever it is, unfortunately it is shown that even macroeconomically, the American Dream (and the Spanish Dream) are increasingly a fictional reverie and less an attainable dream, especially for those classes that are already beginning to be almost as out of the system that requires the preparation of their own economic indicators. Some will say that this way you can legislate better in your favor, because the new indicator helps us to know your economic progress reliably, but the question that I ask next proceeds having come here as we have arrived: with diminishing wages or stalled for the middle class, with lobbies that only twist legislation and political will in favor of the interests of large corporations, etc.
Is anyone going to do something with that new inflation for the poor? Does anyone really care what is going to be of those humble classes to whom the only thing they have left is their vote? And then they will tear their clothes because that vote (and also a good part of the middle class coming less) is anti-system, of which the growing political polarization is just one more example. The fact is that it may be, but in any case, it is as anti-system as having degenerated that capitalism (once popular) to this point of unbalanced asymmetry.
N order to constructively redirect this anti-system sentiment of the less well-off, it is unavoidable to also address the anti-system sentiment (or rather “self-system”) of the most well-off, because here are all the socioeconomic agents that can reach behave extractive (yes, both elites, as well as mass as a whole). Finally, both social strata are again in conditions of equality in something: it is what we have to live in a system that (for now) still has a good dose of democracy. I say no more than far from correct. Some will be taking (anti) ideas. No, if I always tell you that the sustainability of the system as a whole is based on a well-off and enlightened middle class … And by the way, the econometrics itself is simplified and more realistic.