Inflation, CPI, and the Decline of the Purchasing Power of the Dollar

The Omaha Bugle-Global News Network

Send us a text

Although the Nobel Committee once again inadvertently omitted them from the list of candidates for the Nobel Prize in Economics, Adam and Jeff persevere in their efforts to educate and entertain the general public about all things financial. They consider the inflation that has been experienced by the United States over the past two years. They also discuss how all administrations try to spin any news about rising prices in the most positive way for their own political purposes. Adam cannot understand how the Consumer Price Index (CPI) can only be 4.1% as proclaimed by the Biden Administration's lackeys when nearly every component of CPI has doubled, tripled or even quadrupled in the past two years. Adam and Jeff note that inflation can be eliminated immediately if one drops such things as food, rent and utilities from the CPI and instead substitutes items that have not changed greatly in value such as construction sand and brussel sprouts. Adam complains about recent increases in his home electricity bill but Jeff points out that Adam is probably receiving premium electricity and not low-grade ethanol electricity as one possible explanation. They also consider a recent article by David Stockman which claims that the purchasing power of the dollar has fallen by 45% since the year 2000 due to the printing of money; a phenomenon that is reflected in exploding prices for everything from housing to cars to the food that tastes good (but not brussel sprouts).