Inflation

Most economists agree that inflation of about 2% or 3% annually is a natural function of a growing economy. But people are worried government stimulus measures could spark much higher inflation. Senior Editor Paddy Hirsch explains.

Category:

Education

Tags:

• marketplace
• whiteboard
• inflation
• economics
• financialcrisis
• paddyhirsch

[dishesdealer417]

Food & Fuel is not included in the CPI so that they can make it look like there is less inflation. They use Hedonics to substitute less expensive items that do the same thing to also fraudulently lower the index.

[ryan84160]

@Transkar This seems ridiculously unfair.

[123koyya]

great explanation

[hep48]

The premise is faulty, and all the witchdoctors promoting 'natural and good 3% inflation' are quacks. Its a simple mental exercise to see that DEFLATION should be the norm. True growth in productivity means that the cost of production is dropping. Dropping costs equal dropping prices. With increased automation, we should see steady decreases in employment and costs, moving towards a future gift economy. Fact.

[Robbob9933]

@dishesdealer417 Back in the 1970s, they would actually inventory shopping carts.

[Billyscccu]

@Robbob9933 Just avoiding protests

[abdullahalmahmood]

what country is he from, and adressing?

[jormoria]

the guy is dyslexic, that is the way dyslexic people write cpi;including me.

[Robbob9933]

@1601tgc When the two item that impact the cost of life are removed from the CPI, it gives a false picture as the health and stability of the economy. If people really understood that inflation is roughly 10 times what is being reported, they would through a fit and would demand spending be reigned in. Causing people to be blissfully ignorant is pure evil.

[1601tgc]

@Robbob9933 this is an important point but a point that is not necessary for the video. The video is simply to explain the concept of of inflation for those who do not understand it. Bringing in the element of what makes up the CPI (and the politics behind it) adds a level of complication and subjectivity that would take away from the core purpose of the video (i.e. explain the concept of inflation in a simple way that is easy to understand).

[bryantonani]

This video is uses absolutely no logic

[Robbob9933]

Poster needs to correct a major point, the Obama Administration removed food and fuel prices from the reported CPI. These are the two largest drivers of the cost of living. During the Obama Administration fuel prices have increased between 150% and 200%. Food prices are a bit tricky. The price for a box may remain the same but the amount contained in the box decreases. Say the medium sized box of cereal costs $4. It used to contain 18 ounces but now contain 14 ounces.