Comment by throw0101a | Hacker News Reader

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Comment by throw0101a | Hacker News Reader

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CPI is peer-reviewed and a form of it is used in most countries:

* https://en.wikipedia.org/wiki/Consumer_price_index

* https://en.wikipedia.org/wiki/Price_index

It's is reproducible by non-government people:

* https://en.wikipedia.org/wiki/MIT_Billion_Prices_project

If you think that inflation is higher than the reported GDP growth:

* https://www.youtube.com/watch?v=d3dO8BW9RHg

* https://awealthofcommonsense.com/2021/01/inflation-truthers/

* Discussed: https://news.ycombinator.com/item?id=25644580

CPI measures a basket of goods and these will differ from country to country. But, let's assume the US government does a good job on estimating the increase in the consumer prices for an average citizen. Still it does not address the problem I mentioned about printing money, which is dissolving the value of money. If that was not true, as I mentioned earlier, we could just print the money and have eternal vacations.

The question is why we do not see the negative effects in the reported CPI. One explanation is a deflationary force that mitigates the inflationary moves. The long term stable deflationary force is an increase in productivity by technological advancements. But I do not think it can keep up with the printing press.

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