Broken record-Barrons letter to the editor

Article Highlights

  • The U.S. dollar's purchasing power already is 10% less than it was in 2007.

    Tweet This

  • The 2007 Dow Jones Industrial Average high stated in 2013 dollars is 15,648.

    Tweet This

  • In reality, we are still 1,500 points below the Dow Jones Industrial Average peak.

    Tweet This

To the Editor:

The March 4 edition was crammed with mentions of how the Dow Jones Industrial Average had, by March 1, "almost reached its all-time high" of 14,198 of October 2007. Here we have rampant "money illusion." Since 2007, the Fed has been busily printing away, and the dollar's purchasing power already is about 10% less than it was then. The March 1, 2013, close of 14,090 is only 12,784, when stated in 2007 dollars. The 2007 high stated in 2013 dollars is 15,648. In reality, we are still about 1,500 points below the previous peak.


Alex J. Pollock
Resident Fellow
American Enterprise Institute
Washington

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Alex J.
Pollock

What's new on AEI

Expanding opportunity in America
image Moving beyond fear: Addressing the threat of the Islamic state in Iraq and Syria
image Foreign policy is not a 'CSI' episode
image The Air Force’s vital role
AEI on Facebook
Events Calendar
  • 21
    MON
  • 22
    TUE
  • 23
    WED
  • 24
    THU
  • 25
    FRI
Monday, July 21, 2014 | 9:15 a.m. – 11:30 a.m.
Closing the gaps in health outcomes: Alternative paths forward

Please join us for a broader exploration of targeted interventions that provide real promise for reducing health disparities, limiting or delaying the onset of chronic health conditions, and improving the performance of the US health care system.

Monday, July 21, 2014 | 4:00 p.m. – 5:30 p.m.
Comprehending comprehensive universities

Join us for a panel discussion that seeks to comprehend the comprehensives and to determine the role these schools play in the nation’s college completion agenda.

Tuesday, July 22, 2014 | 8:50 a.m. – 12:00 p.m.
Who governs the Internet? A conversation on securing the multistakeholder process

Please join AEI’s Center for Internet, Communications, and Technology Policy for a conference to address key steps we can take, as members of the global community, to maintain a free Internet.

Thursday, July 24, 2014 | 9:00 a.m. – 10:00 a.m.
Expanding opportunity in America: A conversation with House Budget Committee Chairman Paul Ryan

Please join us as House Budget Committee Chairman Paul Ryan (R-WI) unveils a new set of policy reforms aimed at reducing poverty and increasing upward mobility throughout America.

Event Registration is Closed
Thursday, July 24, 2014 | 6:00 p.m. – 7:15 p.m.
Is it time to end the Export-Import Bank?

We welcome you to join us at AEI as POLITICO’s Ben White moderates a lively debate between Tim Carney, one of the bank’s fiercest critics, and Tony Fratto, one of the agency’s staunchest defenders.

Event Registration is Closed
No events scheduled this day.
No events scheduled this day.
No events scheduled today.
No events scheduled this day.
No events scheduled this day.