The Discussion (during the Podcast):

1. The inflation rate reflects an increase in consumer prices compared to the prior year (2022 vs 2021). The price increases started almost immediately beginning with the change of administration in January of 2020. Even if we were to believe a 7% inflation, as widely propagated, that number only reflects the increase in consumer prices between 2021 and 2022 (November). If you roll back to a comparison to prices in 2020, the actual inflation rate is closer to 15%, even though this number does not reflect the real number either.
    

2. There is NO such thing as a national Consumer Price Index i.e., inflation rate.
    

3. There are obviously significant differences in prices i.e., cost of living among the different regions, and within each region there are even more differences among the different urban and rural areas (example Northeast Region pricing in Maine vs. New York).
    

4. Many CPI categories are intertwined as cost is significantly impacted by cross components. "Ttransportation” affects most components but are relative to the proximity of the source materials. For example, if the manufacturing facility of meat is in Colorado, transportation cost of meats to Colorado distribution centers are significantly less than meat transported to Florida. The same is true for any and all materials shipped throughout the nation.
    

5. The dramatic cost increase of fuel and gas beginning in 2020 is clearly one of the main causes for the high inflation. Manufacturers and distributors of ALL goods have to adjust their pricing to include the significantly increased transportation and logistics cost, some of which have doubled and tripled over the past 20 months.
    

6. Another, almost equally relevant factor, is the reduction in labor force, which is due to the massive subsidies paid by our government to people who simply do not want to work. Aside from the fact that like they low-ball the inflation rate, the government is disingenuous when they state that our unemployment rate is close to 3.5%, which under normal circumstances would be considered to be very low, the almost 10 million people who used to be in the labor force but choose to stay home and receive healthy government checks, is excluded from the count. So, the actual unemployment rate would be closer to 8% if the non-working bums would be counted as part of the labor force.
    

7. So how is it that inflation and employment numbers used by the government and media alike are so far from the truth? While the BLS claims non-partisanship, obviously, the 2,400 employees do have political allegiances, and like is the case with most government agencies, the tendencies are usually leaning mostly left.
    

8. No matter what the BLS and the media tells the American public, the TRUTH is that the published numbers are very far from the truth.
    

9. Pundits coming on TV and stating wherever there is a camera that our “economy is in great shape” are clearly truth-challenged. The truth is that the entire industrial players, manufacturers, whole salers, retailers have jumped on the gravy train under the excuse of inflation, of course they call it “supply chain challenges”, and increased the cost of all goods and services. The drama lies in the fact that the cost increases are exponential as the cost of handling, overhead, transportation carrying (interest), and margins are calculated as a percentage of the cost of goods. So, if a product supply chain consists of 4 steps i.e., “middlemen” (manufacturer >> whole saler >> distribution center>> retailer >> Consumer), than each operating entity increases pricing accordingly. (See following page). In that example, for example the manufacturers Overhead (OH) increases from $2.60 in 2019 to $3.84 in 2022, and Profit Margins increase from $4.68 in 2019 to $6.91 in 2022. In the case of the retailer, OH increases from $12.08 in 2019 to $26.93 in 2022, and Profit Margin increases from $18.52 to $41.30, maintaining the same percentages but without any additional work or effort on the part of the manufacturer or retailer. It’s all in the percentages. Obviously, who suffers is the end user who now has to pay $35 for short ribs when the same short ribs cost only $16.
    

10. An additional trick played on the consumers is the “shrinkage”. Not only is the consumer charged more for goods, but the quantity of goods is reduced creating a “double whammy” for the end user.