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Politics : The US Deficit -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (18)	10/10/2007 12:33:06 PM
From: Lazarus_Long	Read Replies (2) \| Respond to of 32

Exactly. Now convince me they are not understating inflation. They have reason to because of its political repercussions and because of COLA tied to SS. In a technical sense inflation is a purely monetary phenomenon, but there are different ways to measure the money supply, their ate considerations of velocity, and than there is the fact that you can't just measure the money supply but have to compare it to economic output (if they both increase at the same speed you don't have inflation), but exact output is hard to measure over time to a large extent for the same reason that inflation is hard to measure over time. In the real world, how is economic output measured but in dollars? Nobody measures tons of coal of miles driven. The same is true of unemployment; when your UI runs out, you drop off the index. That keeps the index lower.