The Latest, Greatest, Idea – Inflation Inequality

So, the idea is that we’re underestimating how many poor people there are because poor and rich face different inflation rates. Yet we use the common inflation rate – the CPI – to upgrade benefits and the poverty line. Clearly, this is about the US and nowhere else, given that everyone else uses a percentage of median income as the poverty line:

But just how much bigger the percentage of people living in poverty is becoming may have been underestimated by the official census, according to a new report by the Center on Poverty and Social Policy at Columbia University.

See More