Money Money Money!

No good news today on the economic front. Consumer confidence plunged, the wholesale inflation rate soared, the number of homes being foreclosed jumped, home prices fell sharply and a report predicts big increases in health care costs.

Inflation at the wholesale level soared in January, pushed higher by rising costs for food, energy and medicine. The monthly increase carried the annual inflation rate to its fastest jump in a quarter century.

The Labor Department said Tuesday that wholesale prices rose 1 percent last month, more than double the 0.4 percent increase that economists had been expecting.
The January surge left wholesale prices rising by 7.5 percent over the past 12 months, the fastest pace in more than 26 years, since prices had risen at a 7.5 percent pace in the 12 months ending in October 1981.

So now let’s think about this in the simplest of terms. I may be off a little on things here so forgive me but I would bet I am pretty darn close. If inflation is rising by 7% and the average annual salary increase is 3 to 4% then the average person is getting behind every year by 3 to 4%. Now this only looks at inflation. We would then take into account taxes. What I feel is the issue is that what we as families need the most will go up the most. Most of us around my age can remember that when we were thinking of buying our first home we wanted to by homes in the counties and suburbs. The reasons were simple. Less crime, better schools, and newer homes to name a few. However our jobs stayed in the city and we would deal with the commute. Now with gas prices over $3.00 people are not having the same feelings anymore. One can easily spend $200 to $400 dollars in gas a month. One can also spend up to $400 a month on a family health insurance plan. Even though it is not a necessity in the house cable TV can easily cost $60 a month. I could go on and on but I know you are feeling me.

Now I know I have only talked about families so I can only assume that the single people out here feel it just as bad. Is there any question now why crime goes up year by year? People are going to try to survive anyway they know how. Well we better learn to fall on our knees and pray to God for his help and mercy. Things are getting crazy!