Doublespeak is used to shape public perception of economic policies, particularly those related to currency debasement and government spending. Hopefully the realities behind the rhetoric and encourage critical thinking about financial news and policies.

To bring this into context, Fiatards use doublespeak in political discourse, particularly around economic issues. Here are some ideas to illustrate these concepts in relation to currency debasement and government spending:

• Euphemisms for Inflation:
  • Quantitative easing” instead of “printing money”
  • ”Price adjustments” instead of “price increases”
  • “Monetary policy tools” instead of “currency manipulation”

• Reframing Government Debt:
  • “Investment in the future” instead of “deficit spending”
  • “Fiscal stimulus” instead of “increasing national debt”
  • “Budget reconciliation” instead of “spending increases”

• Doublespeak on Currency Value:
  • “Strong dollar policy” while actively devaluing the currency
  • “Maintaining purchasing power” while inflation erodes savings

• Normalizing Debasement:
  • Presenting annual inflation targets as “healthy for the economy”
  • Describing loss of purchasing power as “expected economic cycles”

• Obfuscating Monetary Policy:
  • Using complex jargon in Federal Reserve statements to confuse the public
  • Referring to money creation as “expanding the balance sheet”

• Reframing Taxation:
  • “Closing tax loopholes” instead of “increasing taxes”
  • “Fair share” rhetoric to justify higher tax rates

• Doublethink on Economic Health:
  • Simultaneously claiming economic strength while justifying continued stimulus measures
  • Praising job creation while ignoring underemployment or declining real wages

• Government Spending Euphemisms:
  • “Investing in America” instead of “increasing government expenditure”
  • “Modernizing infrastructure” instead of “expanding federal budget”

Let’s look at how doublespeak is used with the Consumer Price Index (CPI)

The definition and methodology for calculating the Consumer Price Index (CPI) in the United States has undergone several changes over time that some argue have resulted in understating inflation. Here are some key changes:

Core CPI (1970s):

– Excludes volatile food and energy prices.

– While not replacing headline CPI, it’s often emphasized by policymakers.

– Critics say it ignores important costs for consumers.

Substitution Bias Adjustments (1990s):

– The Bureau of Labor Statistics (BLS) introduced geometric mean formulas to account for consumers substituting lower-priced goods for similar higher-priced ones.

– Critics argue this understates inflation by assuming consumers can easily switch to cheaper alternatives without loss of quality or utility.

Hedonic Quality Adjustments (1990s):

– The BLS began adjusting prices for quality improvements in products, especially electronics and vehicles.

– If a product improves in quality but costs the same, it’s considered a price decrease.

– Critics say this overstates quality improvements and understates real price increases.

Owner’s Equivalent Rent (1983):

– Housing costs shifted from using home prices to “owner’s equivalent rent” – what homeowners
estimate they could rent their home for.

– Some argue this understates housing inflation, especially during housing booms.

Chained CPI (2000s):

– An alternative measure that accounts for substitution between categories, not just within them.

– Generally, shows lower inflation than traditional CPI.

Weighting Changes:

– The relative importance of different categories in the CPI basket is periodically adjusted.

– Some argue these changes don’t accurately reflect real consumer spending patterns.

New Product Bias:

– The delay in adding new products to the CPI basket may miss initial price declines as products become mainstream.

These changes were implemented to make CPI more accurate according to economic theory. However, critics argue they systematically lead to lower reported inflation rates compared to what consumers actually experience which is “Doublespeak” in action!