I find this comical. The media was all over former Vice President Mike Pence for stating that inflation was 16%. Of course, that is much higher than the core inflation rates cited today. He didn’t do himself any favors by telling how he came to that number. It made no sense at all. It is just surprising what little these politicians know about the economy.
The reaction was priceless as everyone defended the government’s reported and calculated an inflation rate of 3%. I have some advice for Pence if he is going to take on the fantasy land of reported economic numbers. If he wants to be accurate, go to the grocery store. In fact, I will bet Mike Pence hasn’t set foot in a grocery store in decades. I would also speculate that the average increase in prices is roughly 20% to 25%.
At one point, used cars were 25% to 30% higher. That, of course, has come down. How about eating out at any type of restaurant? Yes, you guessed it – 20% to 25%. A meal at a fast-food restaurant that was $9 is now $12.
I just find it funny how everyone drinks the Kool-Aid and believes the numbers the government calculates to be true. If you ever did a study on how they come up with these numbers, you would really be left scratching your head.
Having said all of that, it is probably safer to train politicians to stick with government numbers. It is less than they need to understand. If they come up with their own, they don’t run the risk of breaking it down how they came to the number.
Who is ready for 2024 and the election cycle to be over with?
Bob Brooks is the host of the Prudent Money Radio Show, heard every weekday from 3:00 PM - 3:30 PM on FM Radio 91.3 KDKR
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