9 Comments

Terrific 30,000 feet view of the main drivers of our inflationary economy and my thanks to Joseph for the hard work and summary of these forces. I hope that senators, representatives and our president reads these because they are the best!

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Awesome work! Who does your charts?

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I do! I make all the code in R and get most of the data from FRED or other public apis. You can find the code here if you're interested! https://github.com/Miles-byte/Apricitas

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Legend- I dabble in R but they don’t look like that. I’ll have to check it out.

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"likely undo some of the large increases in capital gains taxes that have kept official measurements of aggregate income down"

Capital gains taxes went up? I am not aware of that. Is this in the United States?

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Sorry, I really should have been clearer about this. The total amount of cap gains taxes collected went up because American's capital gains went up. Cap gains tax rates have by and large stayed the same. Collection of cap gains taxes is counted as a reduction in personal income, but capital gains are not counted as an increase in personal income, so a rise in realized capital gains will mechanically lower personal income data.

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Hi Joseph, great read. Quick question. How do you get to 4% Pre-Covid Personal Income/Outlay Growth? I went to thje NIPA table and calculated QoQ changes in Personal income and Outlays going back different time periods. Then i just took the average of those QoQ changes but they are closer to 1%? Curious how you did this.

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Hey Zeno! Sorry for the confusion. The 4% is referencing annual changes, not quarterly, hence the growth discrepancy. Hope that clears it up!

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Ok makes sense now! Thanks for the reply!

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