The True CPI Just Jumped

I recently voiced fear of coming inflation.  Yet on reflection, high inflation is already here.  While measured inflation remains low, I’ve been arguing for years that CPI bias heavily distorts official measures.  My point has always been that official measures of inflation are too high, because official measures fail to properly account for rising quality and variety of goods.  In the last month, however, all this has suddenly reversed.  Due to the coronavirus, official measures of inflation are now much too low.

Open Borders: Now Do You See What We’re Missing?

If people were free to take a job anywhere on Earth, humanity would have more agriculture, more manufacturing, more services.  We would have more restaurants, more homes, more elder care.  We would have more doctors and more janitors, more meal delivery and more cars to deliver the meals.  If coronavirus can eliminate 90% of the restaurant business, open borders can add 90% to the restaurant business.  You’ve seen the former with your own eyes, so you should have no trouble seeing the latter with the eye of the mind.

Keep Healthy Habits, Help Others

The phrase “May you live in interesting times” is said to be a curse. I’m not certain it is. Would you rather be bored to death? Times can be interesting, but — when you’re ready for whatever life throws at you — not cursed. This too will pass. You’ll be fine when all is said and done. There are lessons in all this. Smart people will learn and remember these lessons; others will stay clueless.

Who’s in Charge Here?

The first stage of panic (and second and third) is to scramble around looking for someone to follow.  Many of us followed others into bars, but clearly most followed hoarders of toilet paper and hand sanitizer into all the dollar stores, the drugstores, and the supermarkets.  But the thing that is now most scarce is information.  Human beings continue to query “whadya know?”, but the answer is still “not much, you?”