{"id":19048,"date":"2016-03-21T11:56:20","date_gmt":"2016-03-21T16:56:20","guid":{"rendered":"http:\/\/olduvai.ca\/?p=19048"},"modified":"2016-03-21T11:56:20","modified_gmt":"2016-03-21T16:56:20","slug":"ed-butowsky-calculating-the-true-cost-of-living","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=19048","title":{"rendered":"Ed Butowsky: Calculating The True Cost of Living"},"content":{"rendered":"
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Ed Butowsky: Calculating The True Cost of Living<\/a><\/h3>\n
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Why it’s much higher than we’re told\/sold\u00a0<\/strong><\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Over the past decade, we’ve been told that inflation has been tame — actually below the target the Federal Reserve would like to see. But if that’s true, then why does the average household find it harder and harder to get by?<\/p>\n

The ugly reality is that the true annual cost of living is far outpacing the government’s reported inflation rate. By nearly 10x in many parts of the country.<\/p>\n

This week, we welcome Ed Butowsky, developer of the Chapwood Index<\/a>, to the program. His index is a ‘real world’ measure of how prices are increasing much faster than the wages of the 99% can afford:<\/p>\n

In my business, I wanted to make sure that I was building portfolios that weren\u2019t just efficient but got people the rate of return that they needed. I thought:\u00a0My goodness, what I need to do is give people a list of everything they spend money on and have them track quarter by quarter exactly their increases, so I can do a better job as a financial advisor in determining what return I need to target.\u00a0<\/em><\/p>\n

I got a hold of a list of 50 major metropolitan areas and found people in every city and I gave them a job: I asked everybody to send me what items they spend their after-tax dollars on. I got about 4,000 different items. Then I took the 500 that most frequently appeared on the list and we’ve been tracking specifically these same items in every city since that period of time. I weight this list based on what percentage of a normal income people spend on each item.<\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Ed Butowsky: Calculating The True Cost of Living Why it’s much higher than we’re told\/sold\u00a0 Over the past decade, we’ve been told that inflation has been tame — actually below the target the Federal Reserve would like to see. But if that’s true, then why does the average household find it harder and harder to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[9860,5826,1055,5827,172,13049,305,353,426,3281,2218,2227,3303,2084,3570],"class_list":["post-19048","post","type-post","status-publish","format-standard","hentry","category-economics","tag-adam-taggart","tag-chapwood-index","tag-consumer-price-index","tag-cost-of-living","tag-cpi","tag-ed-butowsky","tag-federal-reserve","tag-gdp","tag-inflation","tag-jobs","tag-peak-prosperity","tag-prices","tag-stagflation","tag-statistics","tag-wealth-gap"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19048","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19048"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19048\/revisions"}],"predecessor-version":[{"id":19049,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19048\/revisions\/19049"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}