4 ms·
All dollar-denominated graphs in the article use linear scales, which is misleading, because price inflation is compounded (exponential). Compare the differenc
by dustintrex 5y ago
All dollar-denominated graphs in the article use linear scales, which is misleading, because price inflation is compounded (exponential). Compare the difference in how steady inflation looks between linear (left) and logarithmic (right) here:
https://www.graphpad.com/guides/prism/7/user-guide/images/embim7.png https://www.graphpad.com/guides/prism/7/user-guide/images/em...
This is not to dismiss the fact stock market valuations are outstripping growth of the economy, but the article is definitely making it look even worse than it is.
- dannyw 5y agoThe chart here is a ratio. Both the numerator and denominator are the same unit, so it doesn't matter if the unit inflates.
- dustintrex 5y agoYes, the first chart is a ratio, but Figures 1 and 2 immediately following it are not.