Government cost inflation costs $4T

Discussion in 'Economy' started by Widdekind, Jul 3, 2012.

  1. Widdekind
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    Widdekind Member

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    From c.2000 onwards, the price-level of government purchases (CPI for "G" in GDP) inflated above the price-level of personal consumption (CPI for "C" in GDP). By 2010, the price-level for government was 20% higher than for persons. In the absence of that relative rise in government prices, the same government purchases would have cost up to 20% less each year (10% less each year on average), for a decade. The total extra cost, from that decade of increasingly inflated government prices, was nearly $4T, of nearly $40T total government purchases (2005 dollars). Inexpertly, public reports of fraud, missing money, and other "inefficiencies", during the War on Terror, could plausibly account, for the inflated government price-levels, and extra costs.
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  2. waltky
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    waltky Wise ol' monkey Supporting Member

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    Granny says, "Dat's right - gas prices is goin' up an' things ain't gettin' any cheaper...
    :eek:
    US producer inflation accelerates
    un, Apr 13, 2014 - US producer prices recorded their largest increase in nine months last month, but that jump will probably not ignite inflation pressures as the nation’s economic growth remains moderate.
     

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