Why Debates Over Inflation Are Pointless

In a recent post I suggested that one could argue that the entire increase in per capita income over the past 50 years was pure inflation (and hence that real GDP per capita didn’t rise at all.) But also that one could equally well argue that there has been no inflation over the past 50 years. The official government figures show real GDP/person rising slightly more than 150% since 1964, whereas the PCE deflator is up about 6-fold.