Remix.run Logo
tmaly 6 days ago

I don't trust any government numbers regardless of who the president is. There will always be pressure to fudge the numbers to make who ever is running things look good.

There use to be a billion prices project out of MIT that got shutdown years ago because it show higher inflation than what the rulers at the Fed wanted to show. I believe its funding was pulled or something like that.

deeg 6 days ago | parent | next [-]

Do you have any evidence it was shut down by the Fed? I looked briefly at the BPP numbers and they aren't that far off the CPI. There were even a few times it was lower than the CPI. There was a 2 year period that BPP was noticeably higher but it eventually converged.

https://thebillionpricesproject.com/datasets/

qzw 6 days ago | parent | prev [-]

What’s crazy is that of all the fudgeable numbers in economics, consumer inflation is the one they should try to be the most honest about. It’s something that consumers can more or less directly observe, so having an official number that’s much below people’s “wallet meter” is doing nothing but erode trust in government. In fact, given that a steady inflation rate actually leads to bigger and bigger price increases, most people are going to feel worse about it at a visceral level. If the government wanted to build credibility with the public, they’d come up with a metric that better aligns with people’s actual economic situations. But then that might lead to people demanding higher wages, so I guess it’s a nonstarter in America.

gottorf 5 days ago | parent [-]

> of all the fudgeable numbers in economics, consumer inflation is the one they should try to be the most honest about.

A lot of government liabilities are tied to CPI, so there's a strong incentive on the part of the government to under-report inflation.