Finding Genius Podcast An Accurate Understanding Of U.S. Inflation: A Deep Dive with John Williams Of Shadow Stats
Jan 29, 2025
Join John Williams, Founder of ShadowStats and a seasoned economist with over 30 years of experience, as he unravels the complexities of U.S. inflation. He highlights significant discrepancies between reported and real inflation rates, suggesting numbers could be much higher than stated. The conversation dives into political influences on economic data and the implications for social security. John also discusses the impacts of methodological changes on unemployment figures, revealing that true jobless rates may be greater than what is officially reported.
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CPI Manipulation
- In the early 1980s, the government redefined the Consumer Price Index (CPI) to lower reported inflation.
- This change, prompted by Newt Gingrich, aimed to reduce Social Security payments.
Cumulative Inflation Difference
- The cumulative difference between the 1982 CPI calculation and today's is over nine percentage points.
- This means reported inflation is significantly lower than the true cost of living increase.
CPI Calculation Changes
- The method for calculating CPI has changed multiple times, always lowering the reported rate.
- John Williams uses the government's own data to adjust for these changes, revealing true inflation.