The US government has changed the formula for determining the inflation and purchasing power loss of the dollar eight times over 35 years in efforts to obfuscate the real robbery taking place. As a result, we've known for a long time now that we can no longer trust their official numbers. So how to figure out the real figures?
Fortunately for us, a new company (https://realityindex.co/index.html) is leveraging AI to perform the complicated calculations, and what we're finding is eye-opening: real prices have run 32% higher over 45 years than the government reports.
Put another way, the US government reports that $1 in 1980 is worth only 26 cents now. The real number is 19 cents.
The US government reports that what $100 in 1980 could buy now costs $391. The real number is $515.
People new to this might wonder what causes this loss in purchasing power. It is the government using hard-to-notice tricks to steal from everybody.
What's more, 40% of the purchasing power loss took place over just the last six years! All of this became much worse starting with lockdowns.
Lockdowns were a kind of war on the population. The economic carnage might have sliced off half of the purchasing power of the dollar and cut output by as much as 12% over six years, even as labor participation never recovered and continues to fall. It amounted to a gigantic transfer of wealth to elites, the largest in history, followed by a destruction of wealth of the middle and lower classes.
In the following graphs, the blue line is the official number, while the red is the real number. And in the third graph, we see that the official report is that GDP for the USA went down during the lockdowns and then has been slowly climbing again since then, when the actual reality is that the US GDP never recovered and is continuing to decline in cumulative purchasing power.
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