Since my wife and I have invested well all our lives, we're in the blue pie — but with returns on investments, not wage gains. If you have grandchildren, give them a copy of "Rich Dad, Poor Dad." It will help them avoid the issue of inflation altogether.

From little acorns grow mighty oaks.

In time of war, prepare for peace. (…metaphorically speaking. I'm not talking about conflict!) Save for a rainy day.

As an economics major, I see this economy as strong and growing. As inflation cools, interest rates will cool with it. The trick is for the Fed to release the brakes at just the right rate to balance inflation and growth and employment.

Unfortunately, we went through a LONG period of low interest rates, due to the Fed dropping them to near zero in the last major recession. The cost of borrowing money was cheap, to encourage spending. But then Covid hit. Lockdown caused pent-up demand. Stimulus money flooded the economy with dollars. Once lockdown ended, demand sky-rocketed, driving up prices and stymying supply chains. When demand is high, and people have money, the supply chains choke, and prices go up. That's inflation. About the only tool the Fed has to lower inflation is to raise interest rates on loans to member banks. Member banks raise consumer and business loan rates, and people reconsider their spending. It's painful, but there isn't a known-to-be-better solution.

The economy is a collection of BILLIONS of small and large forces. It takes time for changes to take effect. But we're recovering nicely, without that recession or hard landing many journalists and a few politically motivated economists predicted. Thankfully, most consumers haven't panicked.

Remember, BAD news sells advertising. GOOD news is quickly ignored. You want to sell a product or an idea? Create a harm you say you can solve. About a third of the people will fall for it, every time, so long as you keep repeating that fearful thing...

Clark
The volunteer survey was in an investing forum that generally has useful information and as I later said it had very strange groups and was very unscientific.

Talking to friends at the gym I attend that is mainly made up of powerlifters, body builders, runners and very fit people who own small business, work assembling trucks, selling medium duty trucks to furniture tell me to the margin of expenses to income has gone down. The bright spot is a 24 year who sales $100 to $300 K houses who had a Million in sales in January. People are being told company sales are down. Hours are being reduced. These people are not happy with economy.

Clark
The volunteer survey was in an investing forum that generally has useful information and as I later said it had very strange groups and was very unscientific.

Talking to friends at the gym I attend that is mainly made up of powerlifters, body builders, runners and very fit people who own small business, work assembling trucks, selling medium duty trucks to furniture tell me to the margin of expenses to income has gone down. The bright spot is a 24 year who sales $100 to $300 K houses who had a Million in sales in January. People are being told company sales are down. Hours are being reduced. These people are not happy with economy.

Burkphoto is an economist; i am a retired owner of market research company. The chart that we are commenting on is absurd. I’d be surprised if there was ever a survey to begin with. If there was, the survey writer should be fired. It combines actual experience with the economy (how are you doing?), and the “belief” in the CPI, which are totally different issues.

Clearly, from the comments in the thread, many people do not “believe” the official inflation numbers, and this could be probed further. Everybody has their own experience with prices based on what they are buying, and it would be unusual if any one person experienced exactly the rate of inflation expressed in the CPI composite.

But if people don’t trust statistics in general, this chart is a good example of the cause.