Monday, September 10, 2018

The CD 'chart of the century' makes the rounds at the Federal Reserve - AEI

The CD 'chart of the century' makes the rounds at the Federal Reserve - AEI
"...Various observations that have been made about the huge divergence in price patterns over the last several decades include:
a. The greater (lower) the degree of government involvement in the provision of a good or service the greater (lower) the price increases (decreases) over time, e.g., hospital and medical costs, college tuition, childcare with both large degrees of government funding/regulation and large price increases vs. software, electronics, toys, cars and clothing with both relatively less government funding/regulation and falling prices..." 
Blue lines = prices subject to free market forces. Red lines = prices subject to regulatory capture by government. Food and drink is debatable either way. Conclusion: remind me why socialism is so great again.

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