The problem with the Fed's measure is there's too much substitution. The problem with Shadowstats is that there isn't any substitution. If the price of gold g

The problem with the Fed's measure is there's too much substitution. The problem with Shadowstats is that there isn't any substitution. If the price of gold goes up - but you can get your cavities filled with a way cheaper and better substitute - that seems like a win. If the price of silicon goes up, but you can get an exponentially more powerful computer for the same price that uses less energy (because the chip size shrinks) - that seems like a huge win. If the price of cars is flat - but the safety ratings, reliability, and gas mileage have improved enormously, that seems like a win. Then you have things like food and housing where the substitutes actually make things (arguably) worse... One thing is clear - if you use Shadowstats measures of inflation - the US economy is ~25-75% smaller than it was in the 80s. This idea is absurd.