I was in my intermediate microeconomics class today when the question was asked “who reports Inflation?”. I answered “the same people who create it!”. I was positioned by the professor that " I must report it then because I create inflation". I then relinquished my position and stated that the “fed” reported CPI numbers. After the reaction by the professor to this I realized I was wrong and quickly said “the bureau of labor stats”. The class then continued on to describe to me why i should be happy to pay two dollars in a lump-sum tax (income tax) instead of two dollars in a direct tax on a product i buy. My question to the community, is what kind of connection is there between the fed and the B of LS when it comes to creating inflation and reporting on it?
One thing is for sure, you don’t create inflation unless you have a printing press in your basement.
Plenty of sources here for this, one that I happened to see is What Has Govt Dont to our Moolah, by Rothbard. Available here for free, Page 51 onward talks about it.
There is a free Milton Friedman video somewhere on the net of common people are asking him q’s. One worried lady asked him, “What can I as an individual do to stop inflation?” The answer, “Nothing, you don’t cause it.”
Your original answer to him is correct, the Fed creates inflation by printing money, and the same govt that creates inflation [and blames everyone else] reports it.
One thing is for sure, you don’t create inflation unless you have a printing press in your basement.
Plenty of sources here for this, one that I happened to see is What Has Govt Done to our Moolah, by Rothbard. Available here for free, Page 51 onward talks about it.
There is a free Milton Friedman video somewhere on the net of common people asking him q’s. One worried lady asked him, “What can I as an individual do to stop inflation?” The answer, “Nothing, you don’t cause it.”
Your original answer to him is correct, the Fed creates inflation by printing money, and the same govt that creates inflation [and blames everyone else] reports it.