Pain and Loathing In the Middle Class....

It is getting worse

Welcome once again, my dear readers. This week we will examine more media and political lies. Every time I see a mainstream media report about the economy, I hear how awesome it is. We have NPR talking about summer splurging and girl power, while CNN reports the United States economy is picking up steam in the second quarter, and other sources touting it as the strongest in the G7 (here, here, and here). I suppose if you are a limousine liberal or connected crony that may be true, but I don’t think it is. In my opinion, all that reporting is just trying to calm the peasants while putting lipstick on a pig.

The truth is most people are suffering. Much of the middle class moved from being uncomfortable in 2021, to struggling in 2022, and as 2023 rolls on most regular people are just trying to survive. While I know the US Government doesn’t count food or fuel in inflation calculations, food is up nearly 27% overall since 2020 (here). Inflation is cumulative and compounding, so if you have a product that started at $10 and inflation is at 10%, then in one year that product will be $11. After a second year of inflation at 10%, the product will be $12.10. That second year is not up just 20% with 2 years of 10% inflation; but rather, it is up 21% the from the starting price. The following year it would be $13.31, for a cumulative 33.1%. So, when they say inflation is down from 8% to 4% that is good – but the prices still have the 8% gain and an additional 4% on top of the already increased price.

It isn’t just food either; the cost of everything is increasing at staggering rates (here, here, and here). The same is true across food and fuel to the point most middle-class families I know – including mine – have seen all their disposable income consumed by food, fuel, and other necessities.

If we look at some real indications of economic health, traditional and obscure, the picture is much bleaker than the media lets on. Job cuts are 244% higher right now in 2023 than in all of 2022 (here). I personally know a lot of people who have been let go. The last time I knew this many people looking for work was the housing bust of 2007-09. Every day more companies are announcing massive cuts. CVS just said it would let go around 5,000 employees in a cost cutting business model shift (here). The list is extensive and growing (here). Clearly, the media says, we are seeing a “boom” – as companies scramble to cut costs and downsize to limit their liabilities.