Ep18 - Is the Fed Lying About Inflation?
The Fed says there's low inflation. The data seems to support that point. But try telling that to anyone who's been to the grocery store in the past week. So, what gives? Is the Fed lying about inflation?
In this episode of Mentally Unscripted, Paul and Scott discuss the basics of inflation. And they assure you that you're not crazy. There's a reason why the government is telling you there's no inflation. But your grocery store bill says there is.
They begin by discussing the definition of inflation and the various forms inflation can take. Then they discuss the causes of inflation. And Scott explains why it's not those greedy capitalists.
Next, they talk about asset price inflation vs. consumer price inflation. And they explain how government money printing contributes to the growing wealth disparity. And for a little extra fun, they discuss the difference between capitalism and cronyism. True to form, Scott doesn't miss an opportunity to rant about the need to limit government power.
Next up is a discussion of transitory inflation and who inflation hurts the most. Paul and Scott close the episode with a criticism of the Consumer Price Index (CPI).
Note: Scott says in this episode that inflation will exist in a free-market economy. This is an example of his mouth moving faster than his brain. While there may be inflation in a free market, deflation is more likely.
- The Ultimate Guide to Inflation, by Lyn Alden
- There's another side to the story. Look at the bigger picture.
- Define your terms. Beware of shifting definitions and moving the goalposts.
- Complex systems
- Base rates
- The map is not the territory
- The Cantillon effect (this is a more critical take in the Cantillon Effect)
Image by Foto-Rabe from Pixabay