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You can't take the official inflation numbers at face value. If you look at real inflation it's been closer to 4-5% a year since 2009. Which means if you had $

by eloff 5y ago

You can't take the official inflation numbers at face value. If you look at real inflation it's been closer to 4-5% a year since 2009. Which means if you had $100,000 in cash under your mattress in 2009, you can now generally buy half as much with it. Less in education, healthcare. More in consumer tech. About half in Big Macs or housing. Source: https://www.lynalden.com/inflation/ https://www.lynalden.com/inflation/

throw0101a 5y ago
> If you look at real inflation it's been closer to 4-5% a year since 2009. No, it has not: * https://awealthofcommonsense.com/2021/01/inflation-truthers/ https://awealthofcommonsense.com/2021/01/inflation-truthers/ Given that GDP growth has averaged 2% per year, if inflation was 4-5% that would mean the US economy was having 2-3% deflation in real terms. During the economic devastation of 2009 there was negative 0.35% inflation. Can you imagine what kind of economic apocalypse would occur with negative 2%? What you are saying makes no sense whatsoever.
- dragonwriter 5y ago
  > Given that GDP growth has averaged 2% per year, if inflation was 4-5% that would mean the US economy was having 2-3% deflation in real terms. Pedantic, but the that would be “contraction” not “deflation”. (Contraction = declining real output, deflation = declining nominal prices.)
- eloff 5y ago
  Yes, sorry my memory betrayed me. It's about 3%/year over the last 30 years according to the source. I posted a correction.
eloff 5y ago
It's too late to edit this now, but broad money supply increased at 5% per year. Official CPI says that broad prices rose by about 2.5% per year on average since 1990, while the source I linked thinks there’s a good case that it’s closer to 3% or more. In other words, prices went up more like 150% (2.5x) rather than 100% (2x) in total during that three decade compounded annual period. 4-5% annualized inflation would be crazy - but some things have gone up more than that. If your a young person starting out in need of an education and a home - you'll see more than 3% inflation for yourself personally.

by eloff 5y ago

throw0101a 5y ago

> If you look at real inflation it's been closer to 4-5% a year since 2009. No, it has not: * https://awealthofcommonsense.com/2021/01/inflation-truthers/ https://awealthofcommonsense.com/2021/01/inflation-truthers/ Given that GDP growth has averaged 2% per year, if inflation was 4-5% that would mean the US economy was having 2-3% deflation in real terms. During the economic devastation of 2009 there was negative 0.35% inflation. Can you imagine what kind of economic apocalypse would occur with negative 2%? What you are saying makes no sense whatsoever.

dragonwriter 5y ago
> Given that GDP growth has averaged 2% per year, if inflation was 4-5% that would mean the US economy was having 2-3% deflation in real terms. Pedantic, but the that would be “contraction” not “deflation”. (Contraction = declining real output, deflation = declining nominal prices.)
eloff 5y ago
Yes, sorry my memory betrayed me. It's about 3%/year over the last 30 years according to the source. I posted a correction.

eloff 5y ago

It's too late to edit this now, but broad money supply increased at 5% per year. Official CPI says that broad prices rose by about 2.5% per year on average since 1990, while the source I linked thinks there’s a good case that it’s closer to 3% or more. In other words, prices went up more like 150% (2.5x) rather than 100% (2x) in total during that three decade compounded annual period. 4-5% annualized inflation would be crazy - but some things have gone up more than that. If your a young person starting out in need of an education and a home - you'll see more than 3% inflation for yourself personally.