Earlier this year, Karl Denninger at The Market Ticker wrote about how the slow, deadly burn of inflation:
2% ^ (45 – 1) = 2.3901
That is, one dollar of goods at age 20 requires $2.39 to buy at age 65.
This is basic arithmetic. If you do not understand it then you have no business being dog catcher, say much less the leader of a political party at a county, state or federal level, nor a candidate for state or federal office.
And incidentally, the long-run inflation rate is actually closer to 3%, which means that $1 of goods at age 20 requires $3.67 to buy at age 65.
Do you define that as “stable prices”?
