Inflation is much worse than advertised. But you already know that if you’ve been in a grocery store at any point over the past year.
But how much worse?
Today’s guest is Ed Butowsky who has operated his own proprietary inflation index – the Chapwood Index – for well over a decade.
It operates in a decidedly simple and easy-to-understand manner:
“The Chapwood Index reflects the true cost-of-living increase in America. Updated and released twice a year, it reports the unadjusted actual cost and price fluctuation of the top 500 items on which Americans spend their after-tax dollars in the 50 largest cities in the nation.”
That’s it. It just adds up what people actually buy and measures the prices this time period compared to last and it does so in proportion to what median people actually spend as a percentage of their income.
No hedonics, no substitution, and no weighting tricks that are favored by the corrupt statisticians in the BLS.
The punchline? Inflation is actually about 2-3 times higher than what the government reports. Over time, and not very much, you will become impoverished by inflation.
Knowledge is power.