If Inflation is Under Reported, then GDP is….

The most popularly followed inflation-adjusted economic statistic is the GDP, which reflects the growth in dollar economic activity minus the growth in inflation. If inflation is understated, which it is, then the resulting real GDP is overstated.

Isn’t that the truth lately!!

Inflation is high, but the government reports it low which makes GDP higher. So that paltry 2% GDP growth right now is probably more like -2%.

More good stuff at Government Shadow Stats.

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