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Tag Archives: inflation
Are US prices rising more rapidly than the federal government statistics indicate?
Here is Peter Schiff’s take in “Inflation Propaganda Exposed”.
Compare this against an establishment Republican’s take on AEI’s website with “Is the US government wildly understating the inflation rate? No, it isn’t“.
Why not also take a look at Google Trends data comparing relative search patterns on “expensive” v “inflation”?
To summarize my opinion, I agree with Hazlitt who argued against the utility of price indexes for economic intervention on the grounds that it is only relative changes between individual prices that communicate meaningful information about monetary stability. The logic behind hedonic adjustments is flawed because people don’t derive utility from “quality improvements” alone; there is also disutility from obsolescence and “relative deprivation“.