rate of increase in Federal Budget vs CPI

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I got the numbers for the Federal Budget from this wiki page:
http://en.wikipedia.org/wiki/United_States_federal_budget

and the Inflation rate from:
http://inflationdata.com/Inflation/Inflation_Rate/HistoricalInflation.aspx

An increase in Federal Budget at a faster than inflation rate can only mean that either the government is expanding, or the given inflation rate is not true or both
 
a) total consumption/investment = consumption/investment of government and the private sector
b) the correlation coefficient between the two time series is -0.02, i.e. they are statistically unrelated
 
Quote from makloda:

a) total consumption/investment = consumption/investment of government and the private sector
b) the correlation coefficient between the two time series is -0.02, i.e. they are statistically unrelated
More...

I didn't say it's related or unrelated, this is all I said

"An increase in Federal Budget at a faster than inflation rate can only mean that either the government is expanding, or the given inflation rate is not true or both"

which stands true

what other meanings could a faster increase in federal budget vs inflation rate have?

if someone told you their total expenses were $40,000 in 2007 but they reached $50,000 in 2008, what would that say to you?

I'd say it is either due to inflation, purchase of additional products/services, an increase in the number of people the person supports and provides for (ie kids), or some combination of those three.
 
hmmm, when I calculated the correlation with acutal numbers instead of the percentage increase I got a coefficient of 0.98867.



Quote from makloda:

a) total consumption/investment = consumption/investment of government and the private sector
b) the correlation coefficient between the two time series is -0.02, i.e. they are statistically unrelated
More...
 
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