Although the writer of the article is correct in stating the under reporting of inflation will over state growth and therefore productivity……. the tool he has chosen to support his conclusion is the wrong tool to use and therefore his supposition is flawed.
THE Big Mac index was invented by The Economist in 1986 as a lighthearted guide to whether currencies are at their “correct” level. It is based on the theory of purchasing-power parity (PPP), the notion that in the long run exchange rates should move towards the rate that would equalize the prices of an identical basket of goods and services (in this case, a burger) in any two countries.
The correct person that has all the tool necessary to demonstrate the ills of the government propaganda is John Williams of shadowstats.com
According to the chart reported growth is about +2% but actual growth is -2%
You need no other source to refute the USG misinformation……what we need is action to make them stop doing this.
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