August 17, 2011

More of what's wrong with "core inflation"

Core inflation, as opposed to overall inflation, eliminates energy and food prices from calculations because they're too "volatile."

Well, this is the real world. We eat every day, we heat and cool our residences and workplaces every day, most of us drive some place every day, and so forth. It's ridiculous to exclude these things.

But, tobacco products and pickups ARE part of core inflation. That's when just 25 percent of adults use tobacco products and even less own a pickup (not counting SUVs).

This is just another way in which the "economy" of ivory towers and DC Villagers is disconnected from the real, actual economy.

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