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Price of Goods Increase 2.6 Percent in Bay Area

How has the increase in costs affected your family?

By Bay City News Service

The price of goods in the San Francisco Bay Area has increased by 2.6 percent this year, according to the U.S. Department of Labor's Bureau of Labor Statistics.

According to the Consumer Price Index for the Bay Area, food prices in the region rose 2.8 percent and prices for gasoline rose 2.2 percent over the last year.

Bay Area prices for all items, not including food and energy, rose by 2.9 percent over the last 12 months, with the cost of shelter increasing by 3.5 percent and the cost of apparel increasing by 6.2 percent, according the U.S. Department of Labor's Bureau of Labor Statistics.

Has the increase in expenses impacted your family?

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Davis July 21, 2012 at 07:04 pm
Another good reason to avoid Union City retailers with taxable items. Shop Fremont, Hayward, Newark
Albert Rubio July 21, 2012 at 07:32 pm
"Inflation is a general increase in the money supply.
One of the effects, that may accompany inflation (and is sometimes confused for it) is a rise in prices. A similar, but opposite effect in kind is deflation." http://wiki.mises.org/wiki/Inflation
Albert Rubio July 21, 2012 at 07:33 pm
Henry Hazlitt
Inflation in One Page Cause and Cure of Inflation 1. Inflation is an increase in the quantity of money and credit. Its chief consequence is soaring prices. Therefore inflation—if we misuse the term to mean the rising prices themselves—is caused solely by printing more money. For this the government’s monetary policies are entirely responsible. 2. The most frequent reason for printing more money is the existence of an unbalanced budget. Unbalanced budgets are caused by extravagant expenditures which the government is unwilling or unable to pay for by raising corresponding tax revenues. The excessive expen­ditures are mainly the result of government efforts to redistribute wealth and income—in short, to force the productive to support the unproductive. This erodes the working incentives of both the productive and the unpro­ductive. 3. The causes of inflation are not, as so often said, “multiple and complex,” but simply the result of printing too much money. There is no such thing as “cost-push” inflation. If, without an increase in the stock of money, wage or other costs are forced up, and producers try to pass these costs along by raising their selling prices, most of them will merely sell fewer goods. The result will be reduced output and loss of jobs. Higher costs can only be passed along in higher selling prices when consumers have more money to pay the higher prices.
Albert Rubio July 21, 2012 at 07:33 pm
Henry Hazlitt
Inflation in One Page (concluded) 4. Price controls cannot stop or slow down inflation. They always do harm. Price controls simply squeeze or wipe out profit margins, disrupt production, and lead to bottlenecks and shortages. All government price and wage control, or even “monitoring,” is merely an attempt by the politicians to shift the blame for inflation on to producers and sellers instead of their own monetary policies. 5. Prolonged inflation never “stimulates” the economy. On the contrary, it unbalances, disrupts, and misdirects production and employment. Unemployment is mainly caused by excessive wage rates in some industries, brought about either by extortionate union demands, by minimum wage laws (which keep teenagers and the unskilled out of jobs), or by prolonged and over-generous unemployment insurance. 6. To avoid irreparable damage, the budget must be balanced at the earliest possible moment, and not in some sweet by-and-by. Balance must be brought about by slashing reckless spending, and not by increasing a tax burden that is already undermining incentives and pro­duction.
Tamerlane July 21, 2012 at 08:13 pm
....So, in a nutshell...
it is not that prices are rising, but rather the value of your money is decreasing. These retailers know the value of a dollar. That's why they need more and more of them in exchange for their goods and services.
Tamerlane July 21, 2012 at 08:13 pm
....So, in a nutshell...
it is not that prices are rising, but rather the value of your money is decreasing. These retailers know the value of a dollar. That's why they need more and more of them in exchange for their goods and services.
Albert Rubio July 21, 2012 at 11:03 pm
Yes, because there are more dollars chasing the same amount of goods.
More dollars does not mean more goods, therefore it does not mean more wealth.
Mona Taplin July 22, 2012 at 12:14 pm
No kidding! Prices are going up? I'll be darned. The fact of the matter in a nutshell is that we are bringing home less money, but paying more for everything we buy, Over regulation is at least partly to blame.
jerry July 22, 2012 at 03:12 pm
Try telling that to liberals. Try telling that to Sacto and the socialist califonia government.
Edward July 22, 2012 at 03:55 pm
The 60 cents you save per $100.00 in purchases is offset by the Gasoline you use to get to other cities. Support Union City and our great infrastucture by shopping in Union City. It is no different when you out source to another city as a an outsource to another Country. If you live in your city, support your city.
Edward July 22, 2012 at 04:02 pm
Everything you buy is affected by Energy it costs to produce and deliver it to you. Energy prices rise and so does everything else. Wages have been Flat the past 4 years but energy has risen 30%. I put Solar on my roof and save $200.00 per month on my energy bill and that helps offset the cost of everything else. In fact, as an investment, it has a 15% return on my investment. That sure beats a lot of other things I could haver invested in.
Edward July 22, 2012 at 04:16 pm
If the United States of America was a third world country with no assets, I would agree but we, as a country, have a net worth of 125 trillion in assets (Government owned assets, not privately owned assets) and a mortgage of 15 Trillion. it is like a Homeowner with a $400,000.00 home with a $50,000.00 Mortgage on it. In order to upgrade a paid off home, people will remodle using a $50,000.00 bank loan to improve ones lifstyle. We don't mind paying over time to live good in the present. America does the same thing and when the Mortgage is less than 15% of the net Value, nobody cares.
Republicans are using our Nationl Debt, (mortgage) to instill fear and get votes but the reality is we have always had a National Debt so we could get things done and be the Stongest Superpower, best life style country on the planet. As we bring more jobs back to America, we will have no problem paying off the Debt (mortgage) and our lifestyles will be assured. Stop instilling Fear and get to Work, get bang for your buck by controling what you spend uour money on and live long and prosper. Energy Costs have driven price increases and they are up 30% over the past 4 years and will keep rising as we depend on imported OIL and contine to waste energy on bad inefficient appliances, light bulbs and old cars. Supply and demand drive up these costs.
Mona Taplin July 22, 2012 at 04:25 pm
We are supposed to be replying to comments,- but where did those comments go?
Jerry, I guess you could call me a Liberal with brakes. I believe that we do need some tax supported programs,- Social Security, Schools, reasonable health care, etc. But I also believe that Gov regulations on business go overboard to say the least, and this idea of everything free for everybody is foolishness. There's no such thing as FREE. It's all provided by tax payers, and without them the "free" goes down the drain. How can we make loans with money we haven't got to children of illegal immigrants? As for that nonsense about saving $200 per month on energy bills by installing Solar, is just more nonsense. Those of us who have gotten estimates are well aware of that. Not mentioned here is improvement in the housing crisis so now people are offering more than the asking price. Hey,- isn't that part of the way the crisis started to begin with. by paying considerably more than homes were worth? Won't we ever learn? Also Government should step in and prevent foreign buyers from purchasing our housing. That means individual homes as well as apartments, etcThat's the way our money goes: Pop goes the weasel!
Edward July 22, 2012 at 04:25 pm
Living Wage ! When the minimum wage is not a living wage, Those working for it can not STIMULATE the economy through spending. When Union Wages kept the middle Class vuying homes, buying cars, buying consumaboles other than "Food and Shelter" our economy espanded and everyone prospered. Today only the Very wealthy, privilaged, Highly Educated workers can stay on top. Union workers have been able to keep up withthe "upper Crust" but those without Unions have fallen behind. The minimum wage doday has half of the buying power of the minimum wage of 1965. When a low minimum wage becomes the baseline for wages, it becomes the guidline for Poverty. The argument that Teenages can not get jobs if foolish because teenages have the job of getting a good education and training to enter the High Paid, Skilled labor market.
Edward July 22, 2012 at 04:32 pm
Wrong, when the Value of Money is decreasing, Banks have to pay higher interst rates to get peoples money. When costs are driven up by only ONE factor, ENERGY, we see the slow down of growth, stagnet wages, increasing costs but the dollar remains constant in areas unaffected by Energy costs. Energy affects every economy on the planet and comp[are the value of the Dollar with the YEN or EURO. It is reletivly the same if not stronger today than 2 years ago. Balancing the budget is not as important as keeping America Stong and keeping its infrastructure up to date to compeat for jobs and companies who create these jobs.
Edward July 22, 2012 at 04:37 pm
Driven by ENERGY costs, not by our National Debt. Groceries are Energy Heavy in their production and delivery. With automation and lebor reducing farm equipment, more of the cost is on OIL PRICES than on Labor costs. The Energy Prices are passed on to Consumers, so prices rise. When Energy prices Fall, then costs fall and competition will reduce some of the prices. Much of what we buy comes from other countries who are also dependent on Energy to produce products and those prices at the check out stand reflect that.
Mona Taplin July 22, 2012 at 04:40 pm
Edward, I can agree to some extent with what you have written. Still, easy credit in years past encouraged people to buy way more than the could afford,and look what it did to them when a crisis came. So called "creative financing" helped a good many people buy homes, and look what happened when the crisis came. Not only that, but the majority of home buyers don't stop to look at how much that home really costs when they take on a 20 or 30 year mortgage. I'm glad we skimped and saved and paid off our mortgage in a few years instead of listening to the experts who strongly advised against that. Those of us who were children during the great depression see things a little different than those born during more affluent times.
Edward July 22, 2012 at 04:46 pm
Even though our productivity in America is up, Wages have not followed. When Energy prices drive much of the inflation, it is Politics and who controles Congress that sets the tempo on Wages. When Republicans are in office, Wages are stagnet, no Minimum wage increases and Big Business does not have to give pay wage increases when unemployment is high. When Democrats are in Control of Congress, Minimum wages come up to the "cost of living" standard, people start buying again and more jobs become available. From 2008 to 20010, the Democrat controled Congress and President Obama was able to regain 3 million New jobs after the 2008 crissis but when the Congress went to the Republican Majority, only 1 million new jobs over 18 months were created. When Democrats are a majority America prospers. When the Republicans are in charge only the 1% prospers.
Edward July 22, 2012 at 06:04 pm
Profits made from loans made Credit a comodity sold by Banks. It used to be hard to get unsecured consumer credit when everything above 10% per anum was called Usery. But, with 18% amd 27% Usery bank Rates, it has been a temptation that consumers fell for and now we are a personal debt ridden nation. Over the past 4 years, people stopped spending and started paying dow their credit cards and banks again are tempting people with teaser rates, 0% for 12 month balance transfers to build up the "easy Money" Banks could make. You may not be able to get a SECURED "home Loan" but they will give you an Unsecured "Credit Card"
Edward July 22, 2012 at 06:14 pm
My utility Bill dropped from $320.00 per month to $120,.00 on an All Electric home in Union City. Retirered, i spend a lot of time at home with my Electronics, lighting, Big Screen TV, and everything is "Energy Heavy". I reduced my utility purchased usage from 1300 Kilo Watt Hours in tiers 3,4,&5 to 630 Kilo Wat Hours but added more household usage because it was their to use from my Solar Panel System that I built and installed myself as an Inside Wireman Electrician. Today LOWES has homeowner install systems that you can buy and hook up yourself if you have the skills to do so...Or intall the panels yourself and hire an electrician to make the final hook up to the utility or Battery system that you chose to use. If you use over 1200 kilo watt hours a month, it pays to go solar. if you use under 400 kilowatt hours you should save your money and invest in Dodge and Cox Balanced Fund or Vanguard Wellington Fund for good solid growth.
Mona Taplin July 22, 2012 at 08:04 pm
Edward, thank you for your comments on Solar power. I'm sure it that would be welcome advice for many people. We old timers can no longer do our own work, but I'm sure a lot of younger people could.
About credit cards and unsecured credit, I know a young couple who went bankrupt a few years ago, not as a result of the present day crisis. Almost immediately after they began getting credit card offers, signed up for a couple, and yep! they were approved. They said they were approved because they were out of debt, the allowed debt was lower and the interest rate was a "little" higher. Sure enough, they are right back where they started with expenses higher than their income so they are scrambling around to rob Peter to pay Paul and running far behind. This kind of foolishness is the fault of both the borrower and the lender.
Albert Rubio July 22, 2012 at 08:35 pm
Edward,
You have a point in that prices may be driven up by other factors like energy costs. To be honest I don't know how much energy costs have affected prices. That being said, My intention is to share the effects of inflation which is always a factor. BTW, there is a relation between a drop in the value of the dollar which makes imports more expensive like oil. This is why oil prices swing so often. Being dependent on our own oil is not the answer, stopping inflation is the first solution. I recommend economics in one lesson. http://mises.org/document/6785/Economics-in-One-Lesson
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Nika Megino (Editor) May 30, 2013 at 10:45 am
When is Kid's Night Out?
Pacific West Gymnastics June 8, 2013 at 09:18 am
Hey Nika, Sorry for the delay. We offer Kid's Night Out 1 to 2 times per month. We have oneRead More tonight, actually! Our full schedule is on our website (http://pacwestgymnastics.com/camps-events/kids-night-out/). Thanks!