Inflation Watch: $245,000 To Raise A Child In United States

Welcome to Middle-Income Family American Style

Yesterday the USDA`s annual report laid out another 2% increase in the cost to raise a child in the United States, and this only includes the costs associated with the age of 18, which any modern family realizes doesn`t include college, and the fact that many kids either live at home, or require financial help long after the age of 18.  

So just as it has become a modern necessity for many Americans to have both parents working, unlike the 1950s era where one parent could support an entire family, not only do both parents have to work to afford the increased costs of modern living, but most Americans based upon these figures cannot rationally afford to have kids!

Fed doing God`s Work Raising Prices

So the Federal Reserve can think they are doing God`s work by trying to raise inflation in the economy, a measure that we have said under-reports the real inflation in the economy due to constant ‘reporting measure adjustments’ but every year it costs more and more to raise a child these days, regardless of recession or not, real prices never drop in the overall economy.

Inevitable Mismatch

This is just another example of the failure of the failure of  Federal Reserve policy, the methodology is flawed, wages will never keep up with inflation, if inflation is artificially manipulated by the Central Bank, because it doesn`t reflect the market forces in the economy, which will always reflect the wages side of the equation, resulting in the mismatch that we have had in this area for such a long time that it has become a discernable trend in society.  

Inflation Levels Should Reflect Economic Conditions

Inflation should actually have been negative during the recession and the financial crisis, prices should have reflected the slowdown in the economy for many years, but the Federal Reserve in all their wisdom printed like paper was going out of style, and caused prices to go up on average at a 2% clip, even during an economic slowdown with high unemployment. How the hell are wages ever going to keep up with inflation if one measure is manipulated by the Federal Reserve through artificial means, and the other measure reflects the actual economic conditions of a financial slowdown?