Sunday, October 10, 2010
COLA and inflation
If you pay attention, you've noticed all sorts of things going up in price or down in size or both. My fifty-cent can of sardines is up by eight cents, 16%. A can of tuna in water now has about two tablespoons of tuna and the rest is water. People complain that a half gallon of ice cream no longer contains a half gallon. The pic above makes the point. Someone remarks that it's deflation in things we don't buy and inflation in things we must have. Yahoo News reports that there will be no cost-of-living raise in Social Security payments in 2011. 'It would mark only the second year without an increase since automatic adjustments for inflation were adopted in 1975. The first year was this year.' And no doubt the third year will be year after next. Read the entire no-COLA story here. Of course, everyone's getting well off the stock market, so these small price rises don't matter.