The Good News and Real News about Inflation and Earnings

GOOD NEWS

The CPI isn’t signalling a recession.

Household income, adjusted for inflation, continues to rise to new heights.

BUT . . .

Inflation is in the eye (or wallet) of the beholder. It is arbitrarily estimated by sampling the prices of defined “baskets” of products and services. Your “basket” probably differs greatly from the official ones used by the Bureau of Labor Statistics.

Almost no household is a typical one.

REAL NEWS

Aggregate statistics are almost meaningless. There is no such thing as social welfare. Only you can decide if you’re better off than you were yesterday.


Related posts:
Microeconomics and Macroeconomics
Unorthodox Economics: 2. Pitfalls (especially the third entry about social welfare)
Unorthodox Economics: 5. Economic Progress, Microeconomics, and Microeconomics