I was actually surprised by how much. Here’s the article, but check out this chart:
But then, of course, there’s a chart like this: http://pricedingold.com/us-retail-gasoline/ which shows gasoline down over the past 20 years when prices in milligrams of gold.
I think deflating GDP by the price of gold yields an approximately correct trend, but a wildly exaggerated one.
Gas still high by historical standards?
Depends. Assumes CPI is an proper measure of inflation to adjsut the USD by. It has morphed into a political number and not an economic number.
I think the CPI is overstated. In fact, if you look, the CPI-U is probably the most overstated measure of price inflation that’s still taken seriously (except for maybe the Billion Prices Project). The CPI-W (used for Social Security adjustments) shows a slightly lower rate of inflation, as well as the more frequently reweighed Chained CPI-U (which is still close to the CPI) and the PCE index and related GDP deflator (used to calculate RGDP and showing a markedly lower inflation rate since 1980 than the CPI), This may be due to the CPI being released by the BLS and not the BEA.
CPI-U is probably the most overstated measure of price inflation that’s still taken seriously (except for maybe the Billion Prices Project)
and anyone else paying attention.
The Feds will be pleased to know you have bought in to the propoganda
The entire world has been industrializing, so I don’t expect gas prices to ever be as cheap as they were a couple of decades ago, even after adjusting for inflation.
gasoline down over the past 20 years when prices in milligrams of gold.
Assumes CPI is an proper measure of inflation to adjsut the USD by. It has morphed into a political number and not an economic number.
“For they have sown the wind, and they shall reap the whirlwind” – Hosea 8:7
But the view is great from this petard, Josiah.
That’s a weird metric, though I get it. If you look at the real price data and don’t overweight the golden period during which OPEC lost control, the data does not stray from the story what we have been hearing.
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