I understand how inflation is measured vs things like the CPI or "basic costs for the overwhelming majority of entities and tax payers".
What I am saying is that it does not make sense that the measurement that influences policy, is the one that only meaningfully measures a subset of the economy that is the minority of the all people impacted by that policy, and as a result the policy decisions are made to benefit entities that represent a minority of participants in the economy, that already have a disproportionately large amount of capital, and for whom the real world impact of bad policy changes is negligible.
If a government wants to make policy choices that impact economic outcomes for everyone, the measurement used to control that policy should reflect the actual economic reality of the majority of entities impacted that policy, and the policy choices should be based on ensuring the best outcome for the majority of those impacted by the policy.
The current use of "inflation" as a driver for fiscal and monetary policy, is BS: the definition of inflation that is being used to drive policy is one that does not reflect real world costs for the overwhelming majority of entities impacted by the policy, and the targeted outcome is "best outcome for a minority subset of the economy that are not subject to any the monetary or financial stressors or margins experienced by the majority". If we insist on a definition of "inflation" that does not reflect cost inflation for the majority of entities, then monetary policy should not be determined by "inflation".
What I am saying is that it does not make sense that the measurement that influences policy, is the one that only meaningfully measures a subset of the economy that is the minority of the all people impacted by that policy, and as a result the policy decisions are made to benefit entities that represent a minority of participants in the economy, that already have a disproportionately large amount of capital, and for whom the real world impact of bad policy changes is negligible.
If a government wants to make policy choices that impact economic outcomes for everyone, the measurement used to control that policy should reflect the actual economic reality of the majority of entities impacted that policy, and the policy choices should be based on ensuring the best outcome for the majority of those impacted by the policy.
The current use of "inflation" as a driver for fiscal and monetary policy, is BS: the definition of inflation that is being used to drive policy is one that does not reflect real world costs for the overwhelming majority of entities impacted by the policy, and the targeted outcome is "best outcome for a minority subset of the economy that are not subject to any the monetary or financial stressors or margins experienced by the majority". If we insist on a definition of "inflation" that does not reflect cost inflation for the majority of entities, then monetary policy should not be determined by "inflation".