Wednesday, February 17, 2016

No Kevin Drum, its medical inflation reative to headline CPI

Kevin Drum shows that medical spending, not inflation adjusted, in this chart.  Seems like a lot of new spending? No, he says, when adjust for medical inflation, the real numbers are  smaller, in the second chart.  How much smaller? Smaleer by the amount of medical inflation, which is is abut 2.8%, in his charts.:

But headline CPI is slightly negative.  The consumer has fewer choices to spend discretionary money, he is constrained by healthcare premiums.  And the constrained American consumer caused a sudden stop in global trade.

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