Repeat After Me: Always Adjust for Inflation. Always Adjust for Inflation.


Over at Wonkblog, Lydia DePillis shows us the chart on the right, which comes from a recent study of the effect of corporate mergers on the price of beer, and says this:

This looks like a scary graph of beer price increases. The researchers determined, though, that the rise is largely not attributable to consolidation in the industry; there may be other factors at play.

Urk! What this really shows is the result of inflation. I’ve overlaid in red the CPI for food and beverages since 2007, and beer prices match it exactly. The economists who wrote the study may have used nominal prices in their chart instead of real prices because that’s what they needed as input for their statistical manipulations, but this is a classic case of why you have to watch out for this kind of thing. What the researchers say they found is that the merger of Miller and Coors produced a 2 percent increase in prices that was offset by a 2 percent decrease in transportation costs, but that has nothing to do with the increase you see in the chart. That’s all inflation.

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Truth #1: The chaos is the point.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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