What do all these things have in common?
Other than electricity, they aren’t used to measure inflation. Which is little consolation to people on a fixed income, who still have to purchase them.
[Update a few minutes later]
This seems relevant to the post subject.
*snicker*
I seem to recall gas prices hitting record levels during 2008.
The price of crude oil ran up to $147 / barrel on July 8, 2008, and (from the link) Sept. 15, 2008—The barrel continues to drop below $100 a barrel for the first time in six months. The idea of a serious financial industry recession is discussed as the market literally begins to melt down! By December 31 of that year, crude fell to $37 / barrel.
So, I’m afraid your little old lady is in fact stupid.
That’s right Chris, you keep confirming the left has no ability to see things in perspective. Every data point is an isolated tool to be manipulated with no relationship to any other. (You’ve convinced us all. /sarc)
BTW, are you trying to convince us of anything? It’s not working, so you can go to your fallback position and just call us stupid… wait, you did that already.
So the crash of crude oil prices during the start of a recession isn’t a relevant data point? The run-up of crude oil prices during otherwise “normal” economic times isn’t relevant?
High oil prices can cause a recession, and often do. Sometimes they respond to the recession by dropping again, in part due to the drop in demand, in part because high prices tend to increase world production, and in part because countries like Saudi Arabia lose more money in US stocks due to a crash than they gain from the higher oil price.
And your “perspective” is that rising demand doesn’t increase prices?
Rising demand does increase prices, but so does decrease supply. Romney’s point was Obama’s policies are, and are intended to do so, decreasing supply. In this case, there is a decrease in supply outpacing the decrease in demand.
Jim, look at what oil prices did under Reagan, during the booming economy. They plummeted, to the point that George HW Bush flew to Saudi Arabia to plead that they raise the prices back up because it was wiping out the Texas oil industry.
So under one booming economy (Reagan) oil prices fell. Under another booming economy (Clinton) they rose. Under whatever we’re calling Bush’s economy, they rose to a record. Then under the worst recession in 70 years, they crashed, and are now on track to recover to pre-recession levels.
Looks to me like whatever was driving oil prices under Bush was temporarily dampened by the recession but is now back in the saddle.
Actually, oil prices fluctuated dramatically under Bush’s term.
So the crash of crude oil prices during the start of a recession isn’t a relevant data point?
Not when we’re talking about the total cost of living. The relative price of everything goes down in a good economy and up otherwise. You’re beating the weeds and missing the forest.
Obama is blowing smoke claiming this is a good economy. Who are you going to believe, him or your lying wallet?
Gas and food prices are included in calculating inflation, and in turn affect the COLA adjustment to Social Security benefits.
Where do these nonsense talking points come from?
The BLS publishes thousands of CPI indexes each month
You believe if you talk out of both sides of your mouth you can claim anything that’s convenient for whatever point you want to make.
Which CPI were they using during Obama’s first two years when costs were going up but there was no COLA?
Baghdad Jim to old lady in poster: “Be silent, hag! Everything is fine! Go back to your Bingo board and MATLOCK reruns and let Dear Leader demonstrate his brilliant grasp of economics!”
“Chip Diller” Gerrib: “Do not panic, Grandma! Please stay in your wheelchair! Obama has the economy firmly in control! Return to The Home!”
Supply? Hello! Meet Demand…
Hey aren’t you the guy who kept saying oil was over priced at $78 and would drop real soon now?
How much was the price yesterday?
It is well known that oil prices increased due to increased consumption by China and India as their economies ramped up, not to mention the Iraq war, Katrina, etc.
After the 2008 crash oil use decreased and the prices went down a bit. Typically economies with high unemployment do not use a lot of oil for transportation so the price came down. Iraq oil production also recovered and Canada is producing more tar sands oil. In the US oil shale extraction ramped up. However tar sands and low grade oil are more expensive to process and refine than sweet crude oil. Trade sanctions were imposed on Iran as well so that oil isn’t in the open market anymore.
A large part of the expense in farming is oil for running tractors and other agricultural machines. So it is hardly unexpected food prices went up a bit. This was more pronounced in cereals and vegetable oils because of the push towards using bioethanol and biodiesel which affects palm oil prices (margarine), corn prices, and other cereal and seed prices as there is less competition from these products to push the price down. This is hardly Obama’s fault since these stupid subsidies were put in place before he was elected although he could have removed them in the US. I don’t know enough about coffee beans to figure out why they had such a steep rise in price however.
Electricity price rises can be explained by a lot of things. Expenses paying for the renewables drive (e.g. windmills, solar panels) which are expressed as higher prices used to pay the loans for construction. Higher coal prices due to increased demand. Few nuclear power projects in construction. Electricity prices should go down in the next decade however as windmill construction costs get paid up and natural gas goes down in price. Much like in the 90s there will be a push towards natural gas generation. This time it isn’t even required to build new power plants although there could be investments in natural gas pipelines.
So what could be done to improve the situation? Cease biofuel subsidies, build more nuclear power plants, improve natural gas transportation. There isn’t a lot that can be done to reduce oil prices other than getting the oil flowing from Iran again. I don’t see offshore drilling in California happening and the other places which can be drilled in North America are being drilled.
Keep in mind Saudi Arabia can manipulate short term prices at will through OPEC.
And your “perspective” is that rising demand doesn’t increase prices?
My perspective is prices don’t matter when you have no money or job.
My perspective is that supply and demand and monopoly all work in known ways.
My perspective is taking data points in isolation to prove your point… doesn’t prove your point.
My perspective is using liars (BLS) to prove a lie isn’t credible. What makes them liars (other than reporting to their boss) is they are using a model that is incredibly susceptible to political manipulation while claiming to be white as snow. I’m not even sure the raw data can be trusted before they massage it.
We just saw an example of raw data being massaged by not including most of CA in the labor stats. This is why you don’t look at isolated data but at trends which are harder to hide…
…unless you lack the ability to see trends… otherwise known as not having a perspective.
So it was a lie that gas prices in 2008 were over $4? Because I distinctly remember paying that and listening to politicians whine about it.
I recall those politicians all being members of the Democrat party, who were bitching that Bush was to blame. How come it isn’t a problem for them today?
Forward!
Average increase in the 20 items: 54%
Average annual increase in price: 4.4%
Official increase over same period: 29%
Official annual increase in price: 2.6%