Wednesday, May 28, 2008

Chart of the Day: It Could Be Worse. A Lot Worse

In terms of inflation, the last 25 years since 1983 has been the most stable period in the last 200 years.

6 Comments:

At 5/29/2008 7:27 AM, Blogger matt said...

What year did they make the distinction between core inflation and the consumer price index, and is that reflected here? Wikipedia tells me 1975.

 
At 5/29/2008 8:14 AM, Anonymous E. Harokopos said...

Stable inflation does not imply:

(1) Better times for consumers
(2) Better wealth distribution
(3) Increased opportunity

This chart compares apples and potatoes.

The recent period has been stable because of an unprecedented decrease in purchasing power, wealth segregation and less opportunity.

 
At 5/29/2008 10:54 AM, Anonymous Anonymous said...

The issue is not inflation, the issue is people's perception of their own situation relative to some reference (their past, their parents, siblings, friends, etc.) If people think they are in good times then they have the experience of being in good times--whatever that means to the individual and regardless of what is really going on.

Too often it seems, perception is confused with reality.

 
At 5/29/2008 10:56 AM, Anonymous Anonymous said...

Translations:

(1) Better times for consumers = Things are better for me!

(2) Better wealth distribution = I'm getting more money than my neighbor!

(3) Increased opportunity = I don't have to work as hard as I used to before to get business or a better paying job.

 
At 5/29/2008 3:35 PM, Anonymous E. Harokopos said...

Translator:

I am sorry you live in such part of the world...

 
At 6/02/2008 7:12 PM, Anonymous Anonymous said...

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