Re:The US government is inviting inflation
by sovsovsod on Monday February 22, 2021 @09:34AM
(#26224961)
Rents included in the CPI.
The argument is that a house is an investment. I.e you sell it in the end. Investments aren’t included in the CPI.
I think that’s BS because investments increase in value due to inflation (and not just because of their inherent growth).
I get the difficulty of extracting the natural growth of the asset from the inflationary growth, but I also believe most of the 2008 monetary mass increase was shoveled into financial assets and this has to be considered.
The argument is that a house is an investment. I.e you sell it in the end. Investments aren’t included in the CPI.
I think that’s BS because investments increase in value due to inflation (and not just because of their inherent growth).
I get the difficulty of extracting the natural growth of the asset from the inflationary growth, but I also believe most of the 2008 monetary mass increase was shoveled into financial assets and this has to be considered.
that’s the gist of it.