Also, MuhammedAllahiSikti is in error. Money for infrastructure is aecetrd entirely out of thin air by The Federal Reserve. This is in part where our National Debt comes from. Every penny collected in taxes by the IRS (collection agency) goes directly to The Banksters . This is one of the reasons why people with checking accounts don't get their physical cancelled checks back anymore. People were beginning to notice that their tax payment checks were being endorsed by the FRB. Now you know.


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Does anyone else see the "trip to the movies" example as, not just cheesy, but a blatant lie about the nature of inflation (made all the worse due to its being targetted at kids)?Even if you accept that inflation is merely an "increase in prices over time", calling an increase in the price of a movie ticket and popcorn "inflation" is very misleading. What if the increase was just at one theater? What if no other goods consumed by the hypothetical person increased in price? What if the theater did provide some genuine "hedonic" improvement (such as stadium seating)?The only sensible price-based definition of inflation is based on a holistic analysis of the entire market. Examples based on one or two goods mislead by suggesting that any time the price of anything goes up, "its inflation".A more reasonable example would be based on a "trip to the grocery store" or similar.No matter. The Fed's "pedagogical" approach on this page achieves its goal optimally, that being reinforcing the notion of inflation as some exogenous "demon" which requires the benevolent and powerful Fed to be slayed. I think most readers of this blog know that the contrary is true and that inflation is a deterministic consequence of an increase in the money supply, something (in principle) entirely controlled by the Fed. The clearly linear plot showing the relationship between money-supply expansion and long-run inflation from a few posts back made the point fairly unambiguously.This "Kids page" is the epitome of the multi-decadal economic misinformation campaign being waged by our government organizations. Sickening!

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I suppose a curious child could ask: "Does this mean you've failed in your pursuit of price stability?" Or better yet: "Do you always fail in your pursuit of price stability?" I love the advice too: time to ask for a raise! It's not time to wonder why your earned dollars have been devalued by a mysterious and unnamed someone, but rather time for you to contribute to the efforts of Team Inflation with your own wage pressures! Don't learn about economic and monetary history, and certainly don't get politically active and try to prevent yourself from being robbed by that mysterious and unnamed someone, just keep spending everything you earn and constantly ask for more dollars to do the same things. Such sagacity!Thanks for the link to this humorous drivel masquerading as economic know how. If I ever have kids I'll be sure to block access to these Fed pages.

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