Michelle VS Ann: Battle of the Convention Dresses...

[amandabeech]

87. Yes, energy prices drive everything up.

The COLA is biased to the low end because it employs substitution and hedonics. Substitution means that if the price of beef goes up, people will buy cheaper chicken, but since the people still get protein, there is no inflation. Hedonics means that if the price of an item goes up and it's supposed to get better (more features, lasts longer, etc.), then there's no inflation because the product is better, even if you don't want or need the new features.

I think that the COLA as it is now calculated is a fraud, even if the economists say everything is hunky-dory.

My Mom was having trouble living on her SS and small pension in recent years because of the inadequate COLA. I gave her what I could, but it was tight for both of us. She's too old to do any work. Thank heavens she received a nice sum from her bachelor brother when he passed two years ago. A little extra really helps.

Well, I need to go to bed. I don't pray much, but I'll say a little one for you.

Hang in there, Cleita.