United States (and elsewhere): Understated Inflation Statistics?

By: Ian Campbell | Tue, Jan 29, 2013
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A recent article discusses the issue of whether reported inflation (and other reported statistics including economic growth, and unemployment rates) in the United States (and with reference to the United Kingdom) hold any semblance of reasonableness. The author suggests that

The author concludes that for the United States:

In the end, the author says that had U.S. inflation been properly reported, that U.S. wage rates would have been higher than they have been, and that indexed pensions would pay out more than they do.

This, of course, leads to the obvious conclusion that if indeed U.S. actual inflation has been materially higher than reported, that has resulted in but one more form of 'failure to act' by the U.S. Federal Government over many years as it may well have been misled by its own inflation statistics - in turn resulting in postponement of 'economic problem solving'.

It also lends support to the view that eventually postponement catches up with those who postpone - which it increasingly appears from an economic point of view that all of us who live in the developed countries have been 'postponers' to a greater or lesser degree.

I suggest you take the time to read The High Price of Understated Inflation, and give serious thought to what its author says.

Topical Reference: The High Price of Understated Inflation, from ZeroHedge, January 23, 2013 - reading time 4 minutes.



Ian Campbell

Author: Ian Campbell

Ian R. Campbell, FCA, FCBV
Business Transition Simplified

Through his www.BusinessTransitionSimplified.com website and his Business Transition & Valuation Review newsletter Ian R. Campbell shares his perspectives on business transition, business valuation and world economic and financial markets influences on those two topics. A recognized business valuation and transition authority, he founded Toronto based Campbell Valuation Partners Limited (1976). He currently is working to bring his business valuation and transition experience to both business owners and their advisors in our new economic, business and financial markets normal.

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