Finance / Government Watch / Politics

Biden’s Inflation – Worse for Seniors

Inflation

Inflation is the measure of price increases year over year, typically based on a “basket” of goods and services consumed by “average” Americans. Here is the rub: Average Americans may fit that basket of goods, but older Americans have their own “basket” of goods. Arguably, Biden’s inflation hits seniors harder. No one will say so, but Biden’s inflation is worse on seniors.

The leading measure of inflation is the “Consumer Price Index” (CPI) which is put together by the Bureau of Labor Statistics. The CPI uses data collected, in turn, from the “Consumer Expenditures Survey.” This all may seem useless background information, but it is not. Do not glaze over, just follow me.

Here is why all this matters. What does the “Consumer Expenditures Survey” measure? It measures the cost of clothes, education, entertainment, transportation, make-up. Granted, seniors use these things, but do they use them as much as younger people?

Another factor figures into official “inflation” numbers, just like official poll-taking for political predicting. The CPI is based exclusively – by the index’s own admission – on “urban” consumers. Rural consumer habits, those living with rural families, in rural settings, are not measured. The index, for example, officially excludes “farm families” and those in the “armed services,” to mention a few.

Likewise, how are items “weighted?” CPI does not consider important demographic trends, including percentage of the population that is older, younger, and trends in purchasing. Nor does it take account of spending habits unless a household earner is employed 37 weeks a year. What does that do to single, non-earning pensioners?

Making matters less representative again, a time lag exists between expenditures in the survey and CPI estimates of inflation, a lag of about two years. So, what is being measured is often two years old, even if habits tied to gas, food, rent, energy, and COVID masks change.

What does all this mean? It means the basket of goods being measured affects what inflation rates really are for a set population, like seniors. 

So, what do we know about the real inflation rate for seniors? Officially, the government says inflation is 8.5 percent, bad enough. So, everything is at least 8.5 percent more expensive than last year. But what if the “basket” of goods and services consumed by those over 50 is different?

What if seniors tend to pay a higher percentage of their life savings for things like rent (or housing costs), used cars, food, winter heating costs, and medicine? That affects the real inflation rate seniors are now paying, year over year.

So, what are the numbers? For starters, the US economy has suffered a shocking 26 percent increase in rental and non-mortgage housing costs in the last ear. How many seniors – even in urban areas – pay rent, are in assisted living, or in a community that does not involve owning outright? They are obviously more affected by Biden’s inflation than fixed rate homeowners.

Next, look at food, used cars (versus new), energy – all up markedly in just one year, major impact on rural and older populations, versus city dwellers and younger groups. Food nationally is up 11 percent (13 percent in June), rising with costs of fertilizer, harvest, transport, and storage. Cost of used cars (and other equipment) is up 43 percent. Energy is up 33 percent, with winter coming. Health care, with 4.8 percent inflation in early 2022, may go to eight percent, double-digit increases in premiums for 2023 under the “Affordable Health Act.” Who does that hit hardest?

Net-net, a reality check is overdue. Unaccounted for – and unacknowledged by Biden – is the rising, invisible tax inflation imposes on the nation, especially seniors on fixed incomes, with variable rate credit, little cushion. The “basket of goods” specific to seniors, in many cases, is hardest it. Like it or not, Biden’s unnecessary inflation hits seniors hard.


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David
2 months ago

Joe-Bama will destroy SS as we know it, and come after the Veteran Community in due time. Hell’s empty, they’re all up here.

Garye
2 months ago

Mr. Charles a very informative and insightful examination and explanation.
The marxist democrat party constantly re-labels,obfuscates,deceives and lies to the Real Citizens of America.
Our most patriotic and most vulnerable are ignored and destroyed by these self serving, immoral, corrupt traitors.
America’s Veterans, Seniors and Mentally challenged CITIZENS are at the top of the list. They are left to chance, sometimes in dire straights,while joebama and democrats spend BILLIONS of taxpayer money on law breakers illegally entering America!
ENOUGH – THROW THE useless,anti American democrats OUT OF OFFICE!!!

RBC
2 months ago
Reply to  Garye

Gary -thank you … we need to remember that when election time comes, sitting at home is not an option … many thanks! RBC

benko gambit
2 months ago

You don’t have to vote for Republicans, but you simply CANNOT vote for Democrats, unless you actually WANT this to continue.

Walt
2 months ago
Reply to  benko gambit

Benko; there is not a dime’s worth of difference between a democrat and Republican….if folks would keep that in mind our voting practices would be a lot didderent….”politicians “are only protecting their own asses……feathering their own nests…”politicians will be the downfall of this great land

Major Slag
2 months ago

Vote for a conservative.

HocasPocas
2 months ago
Reply to  Major Slag

Christian Conservative

PaulE
2 months ago
Reply to  HocasPocas

Constitutional conservative. This is about governance, not religion.

carlos Matamoros
2 months ago

your article is pure misstatement as to fail to take into consideration that an inflationary environment will provide an increase in social security payments in a manner that is disproportionately beneficial to low and moderate income seniors.
while nobody like inflation, just remember that social security payments are linked to inflation and that medicare payments are based on the services incurred, regardless of how it is priced

mark
2 months ago

A increase in my SS in Jan. will not make up for what im spending everyday now due to the Socialist inflation

Garye
2 months ago
Reply to  mark

Right you are – the marxist democrat party cares NOTHING about Seniors , they care about themselves, money and power!
THROW THEM OUT!

Elaine
2 months ago

The raise of social security payments never keeps up with the cost of living (inflation raises the cost of living more) and then the medicare insurance premiums (deducted from the monthly social security checks) goes up if there is a raise.

Garye
2 months ago

Cmon Carlo, think it through.
Ss increases NEVER keep up with an OVER 8% inflation rate!
DON’T BUY INTO the marxist democrat party BS !
Throw these losers out!

Walt
2 months ago
Reply to  Garye

Correctomundo Gary

edward
2 months ago

Once people retire they are no longer “contributing” to the ponzi scheme known as social(ist) security and are now taking WHAT THEY PAID FOR out. politicians are no better than those who look at pension funds as “piles of money just sitting there”. They dont care to pay out that money as promised, they want if for themselves so they would really just prefer all “retirees” die so they dont have to pay out! Failing that, they will pay our as little as possible. By the way, look at their “retirement plans” and see what kind of increases they give themselves each year!

Walt
2 months ago
Reply to  edward

Gary’s:include the republicans in on that plea……they have kept silent during this “regime” we are suffering under

Lana
2 months ago

It amazes me that with inflation at 8.5%, the cost of living adjustment for SS and my retirement is 3%. How are we supposed to keep up on a fixed income? The “youngsters” who voted for this administration are just looking for all the free handouts that we have to pay for.

bill clark
2 months ago

it’s bad if you consider the taxation of benefits like social security is not indexed to cpi

Garye
2 months ago
Reply to  bill clark

Ss benefits should NOT be taxed at all!
Another polictians way to steal from Citizens.

Walt
2 months ago
Reply to  Garye

Garye: SS is earned…it is not an entitlement….not a handout……we are not on the dole fro this government…..we paid into this fund and the government stole fro that fund for decades….democrats as well as republicans……..don’t be mislead……the government robbed us of monies to pay for their lousy over spending

Larkenson
2 months ago

Why are only White people’s taxes expected to pay for their assimilation out of existence by unlimited third-world immigration and FORCE integration into EVERY White country and ONLY White countries?
Nobody demands that the Chinese must pay for their assimilation out of existence by breeding with millions of non-Chinese in their own country.
Diversity is a code word for White Genocide.

David Millikan
2 months ago

With PRESIDENT TRUMP
we had money.
With DICTATOR Beijing biden
we have NO MONEY.

Garye
2 months ago
Reply to  David Millikan

Because….joebama and the marxist democrat party are corrupt and self serving.
don’t worry these losers are STEALING BILLIONS!
In Michigan our useless govenor is giving away millions to everyone to BUY votes for this year’s re- election campaign.
It’s taxpayer money that they redistribute to help THEMSELVES keep suckling at the public trough!!!
THROW THESE CRIMINALS OUT

Cheryl J
2 months ago

I would like to suggest that senior Americans look at how diminished they have become under the Biden administration, tune out the narrative the main stream media is pushing and Remember in November.

Garye
2 months ago
Reply to  Cheryl J

That’s polite Cheryl, I say THROW THESE USELESS CORRUPT marxist democrats OUT OF OFFICE!

MariaRose
2 months ago

If 50 is supposed to be used as the start of being a senior in classification, then that classification should also applied to tenured situations and make it easier for individuals who are physically not able to work continuously to phase down their participation without losing their status position. Instead of being shoved out, they should become the resource for developing the younger employees.

Robert
2 months ago

Wonder what all this would have been like under Trump. His successor has been caught flatfooted on everything Trump was good at, wrecking the economy. We were a YEAR AHEAD of Europe on vaccines. We could have been Europe’s energy savior, boomed our economy and avoided all this.

Garye
2 months ago
Reply to  Robert

With President Trump ,America would be GREATER than ever!
A shining star in troubled World!
THROW THE marxist democrat party and ALL their destruction Out of office!

Walt
2 months ago
Reply to  Garye

Garye: I have been a trumpet since he walked down that escalator however I am, through my research, learning that the Trump organization has ties to China over a period of years along wit a multitude of politicians in Washington……..money is to be made in China snd the politicians are making it at the expense of this great land and our freedoms

Herb S
2 months ago

Why are 50 year olds referred to as seniors when “full retirement age” is 67. This is bogus. It only encourages flaky politicians to be irresponsible.

MariaRose
2 months ago
Reply to  Herb S

That’s because the other senior organization (AARP) uses this age as the start of when to join Senior groups because the elitists ( those with the spare money) tend to “claim “ retirement. Technically it is just a encouragement for companies to start evaluating and phasing out their employees and their benefits from that age forward when ageism starts occurring in workplaces.

Garye
2 months ago
Reply to  MariaRose

Airport is a democrat tool, do not support them, move to AMAC

Joe from Las Vegas Nevada
2 months ago

Did you forget?! These Democrats (Socialist-Anti Americans) don’t want the Seniors. Didn’t they say when it comes to healthcare, that if you were over 75, you should be denied surgeries, because you were towards our end of life anyway!!!????

J. Farley
2 months ago

Here are the facts, and unless you went through what my wife and I went through you don’t n
know what the facts are. I was forced to take disability in the early 2000s. We were doing just fine, as my wife was still Employed with a job that fairly well and I had a small retirement from a previous job that we could leave and let it earn more until it was needed.
Then Americans in their grand wisdom elected Obama/Biden and thing started going to Hell within less than a year the company my wife worked for announced they were closing their doors in several locations, our town being one of them, her option was to take a job with the company in another town where the cost of living was 50% higher or leave the company, her only option was to leave the company. She took another part-time job and within 6 months they closed their doors because of the economy. Because of her age she was having to compete with the Tatoo sweethearts, 60 and smart competing against 25 tattooed and sexy, a lost cause, in 2016 Americans kind of wised up and elected President Donald Trump, and we were just starting to recover and for whatever reason Americans went stupid again and saddled America with Biden/Harris or is it Harris/Biden, since they are the same side of a two-headed coin. We are worse off than when we first got married and I had a job that only paid $275 a month in the Mid-60s.
The whole point to this is too all the stupid people that think the Democrats will make their lives better, you go right on beliveing that, and you will be stupid the rest of your life.

mytake
2 months ago
Reply to  J. Farley

They believe what he says and don’t look at what he is doing. Same with Obama. They vote for who they think they like and not what his record is or if he is qualified. Presidents are not celebrities and their first qualification is not smooth talker.

edward
2 months ago
Reply to  J. Farley

Lenin called them “useful idiots”.

Garye
2 months ago
Reply to  edward

We call them the marxist democrat party supporters, SAME THING

Nick Patriot
2 months ago
Reply to  J. Farley

Sorry to hear of you situation forced upon by comrade obiden and his cabal of devils. I scratch my head in wonder when so many seniors vote for them. You are not alone.

Walt
2 months ago
Reply to  J. Farley

Bravo J Farley…..you sound like a patriot to me!

anna hubert
2 months ago

I bet quite few seniors voted for him

mytake
2 months ago
Reply to  anna hubert

Maybe not. I am 82 and used to be a democrat. Not any more. I started to see something I didn’t like back in the 90’s.

PaulE
2 months ago

Yesterday’s WH speech and performace was so indicative of the complete cluelessness of the Democrats and the Biden administration. Celebrating the passage of more inflationary legislation and spending at a time where the stock and bond markets were nose diving to the worst levels in two years due to still rising rates of inflation. Nothing like counter-acting the interest rate hikes of the Fed by continuing to print more money that is being depreciated at a steady pace.

All of this was topped off by James Taylor providing an absurd musical touch to put the cherry on top. I thought this tops even Nero playing his violin while Rome burns. It was just so symbolic of the compete detachment from reality that the Democrat party has for the reality that the majority of Americans have to endure under their ludicrous policies that this party cranks out on a regular basis.

As for seniors coping with this mess, the trend is clearly for conditions to substantially worsen over the next 12 to 18 months.

Michael J
2 months ago

The government lies about everything, why not inflation? By my personal estimation it’s at least 30 to 40% more to purchase the same items than last year.

Hal
2 months ago
Reply to  Michael J

That’s close to my same calculations (I’m an octogenarian). It means I have to do without some things that previously I could afford. Conclusion: Biden and the DemocRats are hurting the elder population contemporarily … but al lot of younger citizens that are not retired as yet don’t realize it will eventually have the same disguised effect on their economic status when they retire. A Balanced Budget Amendment screams out for passage but even the Repubs are reluctant to take this up! Which leads to the need for term limits to Congresspeople and Exec Heads to quash the Repub reluctance to do what is best for our Constitutional governance

PaulE
2 months ago
Reply to  Hal

Blue states all have balanced budget amendments in their state constitutions. How do the Democrats deal with endless increases in spending? Answer: They just keep raising taxes of all types to cover the costs. That is why the cost per taxpayer in places like NYS, NJ and California, all Democrat run states, are so much higher than in states like Texas and Florida which are Republican run. A balanced budget amendment at the federal level would just institutionalize automatic tax hikes to the entire country to cover the runaway spending. Not a magic fix.

As for term limits, we already have them. It’s called voting. If you think terms limits will result in places like the Blue states constantly electing Democrats to Congress, then you’re kidding yourself. You may eliminate to 30 and 40 career political hack, but that is about it. Your would replace a Pelosi, Warren, Waters and Schiff with people that stand for exactly the same policies as they do. They would just have different names. Nothing else would change. Same goes on the Republican side. By the way, you would also eliminate people like Jim Jordan and other good Republicans as well with your idea.

What you and I find problematic is the fact that the people keep voting for the same type of dysfunctional people for Congress. That is NOT fixed by term limits legislation. You can’t pass any sort of legislation that makes people demand and select better choices for who they vote for. Which is why Congress is as messed up as it is at this point. The quality of the voter determines the quality of the government. That is the simple truth of the matter. There is no magic fix to making people demand and opt for better choices in who gets elected to office at level of government.

benko gambit
2 months ago
Reply to  PaulE

Your would replace a Pelosi, Warren, Waters and Schiff with people that stand for exactly the same policies as they do.”

BUT the youngers would not have the same connections, which would both reduce the grift (which is WAY out of control right now), and spread the remaining around (which would also serve to reduce the grift).

Leesson1
2 months ago
Reply to  Hal

As much as I agree that we desperately need term limits, I don’t see this happening, at least not in my lifetime (I’m in my 70’s). Neither party wants to give up the power that TL’s would do.
I’ve been a conservative all my life and have never understood the draw to socialism especially by seniors. Unless they’re retired public union workers now receiving the cushy retirement bennies dished out by the politicians for their votes (to stay in power), we seniors were/are not better off under either Obama or Biden.

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