Thursday, April 24, 2008
Comparing (Rotten) Apples and Oranges
Shadowstats.com contains several series of data about the US economy, including alternative measures to GDP, CPI, and unemployment. These revised statistics are based on maintaining the same definitions over time. For example, housing and fuel are today excluded from the Consumer Price Index, but they once were part of the formula. Using this alternative to CPI reveals an inflation rate of about 12%. The alternative measures also show a flat line in money supply, 13% unemployment rate and a declining GDP.