(US) Economic Reality Check

[NJ5]

Rath said:

NJ5 said:

Inflation doesn't affect most of those graphics that much. Almost all of them are year-on-year comparisons, you wouldn't see a huge difference due to inflation on those because the inflation effect doesn't accumulate if you're always comparing to the previous year only.

 

No inflation still does change it hugely. A 1B difference between 1945 and 1946 is more than a 10B difference between 2005 and 2006.

Yes but... I still don't see inflation affecting these graphs much. I think this would be a lot easier if you pinpointed exactly which graphs you think are misleading.

The first, fifth and eighth ones can't be affected by such factors, as it's the first time they're going negative. The second one was only negative once before, and that was at a very recent time where inflation wouldn't make a big difference. Similar things can be said for the two last graphs.

The third one could actually be affected, but let's look at it closely. From 2000 to 2010 it shows an increase from 2 to 3.4. That is a 70% increase, WAY more than inflation.

The fourth one is showing way too big increases to be explained by inflation as well.

The sixth one is inflation adjusted.

The seventh one is in percentage and year-on-year, so inflation would show equally no matter the place in the graph.

I think you didn't think about your claim that inflation was a significant factor in explaining the reality in these graphs.

Inflation calculator:

http://www.westegg.com/inflation/

edit - fixed link.