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Raise all prices by 4.9%, GDP grows by 4.9%, with no additional production. And we'll all effectively be poorer.
by grumple 3y ago
Raise all prices by 4.9%, GDP grows by 4.9%, with no additional production. And we'll all effectively be poorer.
- alexb_ 3y ago4.9% is inflation adjusted. God, don't any of you RTFA anymore?
- ModernMech 3y agoDid anyone ever?
- deleted 3y ago[deleted]
- jurgenaut23 3y agoOuch, that hurts. But indeed, that shows that most people have the attention span of a gold fish.
- alexb_ 3y agoIt's astonishing how nearly every single comment below this type of thing is "well inflation is up so this number isn't real". Nearly everything, on every platform. People don't want to believe the economy can possibly be good.
- coliveira 3y agoOfficial inflation figures might be misleading and designed to mask the real impact of inflation. So it makes sense to ask if this "inflation adjusted growth" is real or not.
- SantalBlush 3y agoA lot of users just chime in to brandish their pitchforks after reading the headline. I hope that is changing, because some of the discussion can be pretty good.
- coliveira 3y agoAdjusted by what? Official inflation figures. Look at official inflation and they restrict the measurement to items that are probably less than half of what the average person needs to buy. So inflation adjusted GPD is really misleading in times of high inflation. We might be close to zero growth and the official statistics would still show economic growth.
- gruez 3y ago>Adjusted by what? Official inflation figures. Look at official inflation and they restrict the measurement to items that are probably less than half of what the average person needs to buy. Here's the basket that the bls uses for cpi: https://www.bls.gov/cpi/tables/relative-importance/2022.htm https://www.bls.gov/cpi/tables/relative-importance/2022.htm What specific issues do you have with it?
- willcipriano 3y agoIt's not inflation adjusted. It's GDP Price Deflator adjusted. Like CPI this measurement has a number of ways to game it lower than reality and a great deal of political incentive to do so.
- criddell 3y agoWrite a short story for me and charge me $1 trillion. I'll draw a picture for you that's worth $1 trillion to cover that debt. We just raised GDP by $2 trillion!