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Author Archive | David Rosnick

The Impact of Social Security Cuts on Retiree Income

Executive Summary: There has been a serious push in policy circles to cut Social Security benefits for near- and/or current retirees.  The argument for such cuts has been based on the deficits in the federal budget; the finances of the Social Security program have been at most a secondary consideration. However, the finances of the […]

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Change in Core Producer Price Indexes, May 2007 - May 2010

US Economy: Second Consecutive Month of Deflation

The consumer price index fell again in May — 0.2 percent — as energy prices fell for the fourth consecutive month.  The overall index has now fallen at a 0.7 percent annualized rate since February.  The core CPI rose 0.1 percent in the month and at a 0.1 percent annualized rate over the last three. […]

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Social Security and the Age of Retirement

Excerpt: The first half of the twentieth century saw extraordinary gains in the life expectancy at birth (for men, nearly 22 years; for women, nearly 21 years).  But such improvements did not translate directly into longer retirements.  Life expectancy at age 65 for men increased less than five years over this time; for women, about […]

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Clearing Up Some Facts about the Depression of 1946

Clearing Up Some Facts about the Depression of 1946

The Cato Institute wishes to erase away an entire recession: “You never heard of it because it never happened.  However, the ‘Depression of 1946’ may be one of the most widely predicted events that never happened in American history.”  But the facts are simply not on their side. If true, this would have been a […]

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Change in the Rent of Shelter, April 2007- April 2010

Little Threat of Inflation

Falling energy prices pushed down the consumer price index 0.1 percent in the month of April.  After rising 2.7 percent from January of 2009 to January of 2010, consumer prices were unchanged over the first three months of this year.  Core prices were unchanged in April.  Inflation in the core index has risen at a […]

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Health and Non-Health Components of Consumption

Broken Health Care System Is Behind Deficit

The Heritage Foundation recently expressed concern that “unless entitlement spending is reined in, it will consume all federal revenue in just 42 years, with nothing left over for defense.” Interestingly, Heritage made no mention of why entitlement spending is projected to rise so quickly.  The fact is that the federal government is projected to spend […]

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Changes in Real Hourly Earnings, January 2009 - March 2010

Real Hourly Wage Falls in March

The Consumer Price Index rose 0.1 percent in March.  Inflation stands at 0.9 percent annualized since December.  With the hourly wage of production workers falling by 0.2 cents over the month, the real wage has fallen at a 2 percent annualized rate, and remained flat over the last three months. Core prices remained unchanged in […]

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Core and Non-Shelter Core Inflation 2008-2010

Falling Commodity Prices Hold Down Inflation

Consumer prices were unchanged in February amidst falling prices for energy.  The CPI has now grown at a 1.4 percent annualized rate over the last three months, while the core rose 0.1 percent in the month.  Falling energy prices appeared in all stages of production. Medical care prices rose 0.5 percent again in February, and […]

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Inflation in Non-fuel Imports and Core Intermediate Goods, Jan 2008 - Jan 2010

Core Prices Fall for the First Time in 27 Years

The consumer price index rose 0.2 percent in January as energy prices continue to drive a wedge between the overall and core rates.  Energy prices jumped 2.8 percent (a 40 percent annualized rate) in January.  The core index of inflation, however, fell 0.1 percent in the month — the first such fall in 27 years. […]

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FIGURE 1 Net Lifetime Federal Benefits by Age Group in 2008

Taming the Deficit: Saving Our Children from Themselves

Understanding the Deficit One of the most popular causes among Washington political insiders is reducing the budget deficit.  The conventional story in these circles is that current and projected future deficits will place an unbearable burden on future generations.  Their argument is that the need to reduce the deficit is a question of intergenerational equity. […]

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Real Wages Fall amidst Mounting Job Losses

The headline CPI rose 0.2 percent in September, down from 0.4 percent in August in large part due to falling rent.  The core CPI ticked up to 0.1 percentage points to 0.2 percent last month.  In the last three months, the overall CPI rose at a 2.5 percent annual rate. Rent and owners’ equivalent rent, […]

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