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Old 01-06-2018, 02:06 PM
 
7,022 posts, read 6,651,851 times
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I wonder what personal computers cost in the 80's according to the BLS. The hedonically adjusted value has dropped to less than 4 percent of its 1998 value.

https://fred.stlouisfed.org/series/CUUR0000SEEE01

Ordinarily, an index component that loses nearly all of its value ceases to have any effect on the overall index. The statisticians then have to either re-benchmark the values higher or adjust the weighting to offset what should've become a negligible component of the CPI. Otherwise, hedonic adjustment would have no affect at all.

The other problem with hedonics is that the adjustments are applied only for the purpose of reducing the overall index. There's obviously the problem with frequent technical changes and the higher cost of replacement or forced upgrade.
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Old 01-06-2018, 02:15 PM
 
24,760 posts, read 26,839,776 times
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Quote:
Originally Posted by hitpausebutton2 View Post
So what needs to change to keep it from getting out of hand. Just stop printing money that we dont have? or can business just learn to deal with lower profit margins and sell things little bit cheaper then they actually cost? I see the problem were we demand higher wages to offset the increase in products, but its like beating a dead horse. Again the spiral wage issue as reported.
What we need is a revolution that goes far beyond merely addressing the inflation issue. It goes to the heart of our debt based monetary system. The central bankers won't give that up without the shedding of blood. And ordinary people either don't understand the big picture or, perhaps worse, they do and are afraid to stick their necks out when they don't believe other people will stand by and support them (because the majority don't really understand what's going on).

This video is a good starting point:

https://www.youtube.com/watch?v=cRuKmxQSPSw&t=13s
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Old 01-06-2018, 02:15 PM
 
18,929 posts, read 6,185,164 times
Reputation: 12736
Quote:
Originally Posted by hitpausebutton2 View Post
So what needs to change to keep it from getting out of hand. Just stop printing money that we dont have? or can business just learn to deal with lower profit margins and sell things little bit cheaper then they actually cost? I see the problem were we demand higher wages to offset the increase in products, but its like beating a dead horse. Again the spiral wage issue as reported.
How about that for some ideas ... less profits, people learning to live with LESS stuff, consumption etc....We need so little and have so much in the U.S. So much junk we don't need. Being a senior and NOT getting caught up in the pricey high tech stuff, it's mind boggling how people spend HUNDREDS and more on their gadgets..I'm sure on plastic cards.
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Old 01-06-2018, 03:49 PM
 
Location: Myrtle Creek, Oregon
11,075 posts, read 11,487,748 times
Reputation: 17253
Quote:
Originally Posted by lchoro View Post
I wonder what personal computers cost in the 80's according to the BLS. The hedonically adjusted value has dropped to less than 4 percent of its 1998 value.

https://fred.stlouisfed.org/series/CUUR0000SEEE01

Ordinarily, an index component that loses nearly all of its value ceases to have any effect on the overall index. The statisticians then have to either re-benchmark the values higher or adjust the weighting to offset what should've become a negligible component of the CPI. Otherwise, hedonic adjustment would have no affect at all.

The other problem with hedonics is that the adjustments are applied only for the purpose of reducing the overall index. There's obviously the problem with frequent technical changes and the higher cost of replacement or forced upgrade.
The '80s were the beginning of the big upturn in productivity, thanks to computers. They allowed us to eliminate the entire steno pool. They allowed us to eliminate most file clerks. The ability to type a flawless page of text became irrelevant. The whole cycle of dictation or pencil draft-typed draft-corrections and edits-fair copy-signature-mail disappeared in favor of emails, or send it to the printer and stuff your own envelope if you really need to send hard copy. Fax machines. Networked calendars for scheduling meetings. Project management software that provides critical path analysis automatically. Spreadsheets. Spreadsheets. Modern business could not operate without spreadsheets and those lovely formulae and macros. CAD, which eliminated whole buildings full of draftsmen revising blueprints. The result has been record breaking profits, none of which have gone into the pockets of the people remaining to do the work.
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Old 01-06-2018, 09:48 PM
 
2,360 posts, read 1,033,035 times
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Quote:
Originally Posted by MLSFan View Post
so what rate would you pay for any service if they weren't there? if you are happy with no service, you don't have to use them. if you want cheaper service, don't live in such a rural area
It doesnt matter if your in rural or metro, your bounded by territories and big companies. Like the apt i had in austin. I was stuck with TWC while across the street they can get TWC, ATT u-verse, and another cable proovider. Reason we was stuck with only TWC is they refuse to let them in on that side of the street and territories. They made some agreement were only some parts of town can have options while other parts cant. The ones across the street had better service rates than what i could get. Why? Because they had compitition. Same with power, you have no choice but pay for Austin Power, but soon as you leave the city limits, you got choices with a smart meter. I get daily mails offering better services, mean while i was paying 12c per kw in town vs 8 with the compitition area. Some service you have to use them because they are the only player in town. Dont get me started with drilling your own well here..

Competition is healthy, for the consumer. Just they will lobby their way to prevent others offering services at much better rate.
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Old 01-06-2018, 09:55 PM
 
Location: Prepperland
13,136 posts, read 9,219,999 times
Reputation: 8990
Technically speaking, a dollar bill (Federal Reserve Note) is an IOU denominated in dollars, but has a MINUS value.
(See: Title 12 USC Sec. 411)
A unit dollar is a silver coin. Unfortunately, silver was demonetized in the Coinage Act of 1873. The federal government went on a "gold standard" (to placate the bankers, who feared cheap and plentiful silver being exchanged for their precious gold).

A silver dollar is still worth one dollar.
A dollar bill has no value - by law.
That 320 million Americans got suckered into being obligated parties on the kited chits of CONgress is a political travesty.

LEGAL TENDER STATUS
http://www.treasury.gov/resource-cen...al-tender.aspx
". . .Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything. This has been the case since 1933. The notes have no value for themselves..."

Translation from legal speak : "You've been punked."

You can "buy" lawful money (aka gold or silver coin), but the price is steep.

P.S. - CONgress has no power to "create money." It can coin money (stamp bullion) or borrow money. It cannot create bullion, nor make anything but gold or silver coin as tender in payment of debt. Since 1933, few Americans "paid their debts." Which may explain why government can take your property and not pay just compensation (5th amendment).
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Old 01-06-2018, 11:22 PM
 
25,874 posts, read 49,787,562 times
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What about Silver Certificates, Gold Certificates, National Bank Notes, Federal Reserve Bank Notes and United States Bank Notes?

I have put together a small collection plus special marked bills "HAWAII" and others...

Silver was used to 1970 in the Kennedy Half Dollar if memory serves...

The mint still strikes Gold and Silver coinage...
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Old 01-07-2018, 07:22 AM
 
1,721 posts, read 1,135,176 times
Reputation: 1389
Quote:
Originally Posted by hitpausebutton2 View Post
So what needs to change to keep it from getting out of hand. Just stop printing money that we dont have? or can business just learn to deal with lower profit margins and sell things little bit cheaper then they actually cost? I see the problem were we demand higher wages to offset the increase in products, but its like beating a dead horse. Again the spiral wage issue as reported.
Wall street and corporate exec greed will never let that happen.
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Old 01-07-2018, 07:45 AM
 
4,772 posts, read 2,276,288 times
Reputation: 8864
Quote:
Originally Posted by engineman View Post
The govt uses bogus numbers to measure the cost of living for Social Security.
Who does this and how do they do it? Usually when people make this claim their only evidence is vague references to a gut feeling or some personal anecdote of a favorite product costing more at the grocery store, I'd love to hear some real facts on exactly what is being done to create bogus numbers.

Social Security Admin uses CPI-W to do their COLA, which is calculated by BLS. I'm sure some arguments could be made about methodology but just about every suggestion of an alternate means of measuring ends up with gains/losses in accuracy for different population groups.

Also the word "bogus" implies nefarious doings, do we really need to get into the level of secrecy required to have an organization as large as BLS all conspiring to generate fictitious numbers?
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Old 01-07-2018, 07:48 AM
 
4,772 posts, read 2,276,288 times
Reputation: 8864
Quote:
Originally Posted by lchoro View Post
They're just implementing what they were told to do by the White House and Congress, to come up with a way to reduce the change in the CPI.
Told by who? Was there an executive order from the White House to lower CPI, or was it drafted into a bill by congress?
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