On Thinking

Bonner Might Sound Bright, but you can't really take him seriously

...when he makes a basic arithmetic error in the first paragraph.

Bonner says: "if the dollar were still worth what it was in 2002, they’d get 20% more. In other words, the dollar has lost 20% of its value..."

Wrong.

If buyers got 20% more in 2002 that means the dollar has lost 16 2/3 % of its value. ( 20 divided by 120 equals 16 2/3 %)

Alternatively, if the dollar has lost 20% of its value then people got 25% more in 2002. (20 divided by 80 equals 25 %)

We all make mistakes but if you can't do simple arithmetic maybe you aren't cut out for economics.