Two things...
With a COLA+X% we DO NOT want high inflation to get bigger raises. Our raise is the +X%, not the COLA. The COLA is only keeping us up with inflation and 28%-33% of that is going to federal income tax anyway, not to mention state and medicare, so our buying power is better with a smaller COLA, not a bigger COLA. We want a bigger "X%", not a bigger COLA.
Second, If I haven't convinced you that a small CPI is better for us than a larger one, the 0.93% is for the first six months of the July '06-July '07 period and it includes last Fall where the price of oil, gasoline and most forms of energy fell dramatically. Fall is also the time of year where inflation is usually stagnant, if not negative. It is the Spring when the majority of a year's inflation takes place and that isn't in Muckle's figure. If you look at the most recent twelve months, so that it includes an entire year's inflation cycle, it is 2.8%--slightly over three times the 0.93% from the last six months.
That said, we gotta get past this idea that high inflation is a good thing with a COLA+X% contract.
With a COLA+X% we DO NOT want high inflation to get bigger raises. Our raise is the +X%, not the COLA. The COLA is only keeping us up with inflation and 28%-33% of that is going to federal income tax anyway, not to mention state and medicare, so our buying power is better with a smaller COLA, not a bigger COLA. We want a bigger "X%", not a bigger COLA.
Second, If I haven't convinced you that a small CPI is better for us than a larger one, the 0.93% is for the first six months of the July '06-July '07 period and it includes last Fall where the price of oil, gasoline and most forms of energy fell dramatically. Fall is also the time of year where inflation is usually stagnant, if not negative. It is the Spring when the majority of a year's inflation takes place and that isn't in Muckle's figure. If you look at the most recent twelve months, so that it includes an entire year's inflation cycle, it is 2.8%--slightly over three times the 0.93% from the last six months.
That said, we gotta get past this idea that high inflation is a good thing with a COLA+X% contract.