Ron Paul and Campaign for Liberty have always talked about how the Federal Reserve's inflationist policies always hurt the poor the most. Over at FiveThirtyEight they have a good analysis as to why this is the case:
Over the past two years, prices have risen more quickly for many of the things that low-income households spend a lot of their money on, such as rent and utilities. As a result, these households — families earning less than $20,000 — are experiencing a higher rate of inflation than the public at large even as their wages have stagnated, according to a FiveThirtyEight analysis of government data.
We tend to talk about inflation as a single number affecting the whole economy. But everyone experiences a slightly different rate of inflation for the simple reason that we all spend money on different things. The price of cigarettes matters primarily to smokers; the price of diapers affects mostly parents of young children; and the price of gas is a much bigger deal to someone with an 80-mile daily commute than to someone who only takes the car out for weekend excursions.
Even more reason to audit the Federal Reserve. Find out if your representative is a cosponsor of Audit the Fed legislation here.
Tags: Ron Paul, Audit the Fed, Inflation