Inflation: Prices are higher, but are they out of proportion?

Posted By on July 2, 2014


I’ve been doing some reading lately from those concerned about an uptick in inflation. Since many of the writers are the same people who have been warning for years about inflation, it is easy to take their analysis with a yawn and a bit of skepticism. Still, my commonsense indicator has also kicked in and can’t help but wonder how any government can inject the billions of dollars into the economy without devaluing the currency? So far so good unless you’re paying for college (graph above), unemployed or your paycheck has been stagnant. (the charts in this post may be a couple years off but close enough to make a point)

Note the end points for the images below, Gasoline, Crude Oil, Corn and Gold
graphs, all end up nearly on par with the inflation adjusted dollar.

 InflationData_Corn2011 InflationData_Gold2013 


One online resource (charts in this post) has been independently collecting numbers and comparing Inflation Data for a few years and demonstrate that most commodities have not rise outrageously in recent years (compared to historical numbers). Some of the data goes back to the early 20th century while others covers the more recent 30 years. All in all, prices are definitely “up” but most have risen appropriate to the inflation rate over time … that is EXCEPT FOR ONE. Take a look at the cost of college (and those saddled with college debt); it has risen significantly in comparison to the inflation rate. Economics talk about the cost of energy taking money out of the economy and being a tax on every American, but what about the years of student loan payments preventing the next generation from buying a home or purchasing “things” that keep businesses humming and the economy growing?



Desultory - des-uhl-tawr-ee, -tohr-ee

  1. lacking in consistency, constancy, or visible order, disconnected; fitful: desultory conversation.
  2. digressing from or unconnected with the main subject; random: a desultory remark.
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