April 28, 2008

How Bad is the Economy?

Despite the benign numbers coming out of Washington, the economy is in much worse shape than the government statistics say. OnTheMedia had Kevin Phillips on this weekend talking about how the statistics have been changed through the past two decades to seriously under-report the real economy.

How much worse? If the same standards used in the early 1980s were being used today, the inflation rate which the government says is currently running at 4% would be registering around 11%. Which one do you think reflects your experience better?

courtesy of SanDiego.com

(h/t Seeing the Forest)

Posted by Mary at April 28, 2008 08:05 AM | Economy | Technorati links |

Certainly an index that leave out food and fuel can't reflect reality. Those are the areas that are rising steeply.

Really, does the price of cars or washing machines matter all that much?

Posted by: Scorpio at April 28, 2008 04:02 PM

That might help explain why they are throwing money at us.

Posted by: Blank.FM at April 29, 2008 01:20 AM