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You didn't read the article did you, that's obvious. Why don't you read it.
The article contains the same old, same old, the argument given in the article is merely an argument from motive. But let see:
Substitution: The author mentions this, and implies that it use is some how not appropriate, but shows nothing that demonstrates this.
Weighting: The author doesn't even have the basic facts straight, the CPI-U (what is used for colas, etc) doesn't use a geometric mean, there is another index CPI-U-XG that does though.
Hedonics: Again, no concrete evidence is provided that this is some how a bad thing. The idea beyond this is rather simple, in today's work products are quickly changing so you have to look not only at the price but what you are getting for the price. This issue doesn't, of course, effect basic products like bread etc.
C'mon guys...instead of pulling up rubbish from the internet why not read the numerous studies that went into the changes? The changes that were implemented were being researched, again usually by non-government entities, years before CPI was changed. CPI was changed in response to research.
there isnt much to discuss if someone doesnt want to belive those numbers are massaged,. they can go on just thinking they arent slanted and adjusted to appear lower then they are.
Great, so don't discuss it with me, problem solved.
The article contains the same old, same old, the argument given in the article is merely an argument from motive. But let see:
Substitution: The author mentions this, and implies that it use is some how not appropriate, but shows nothing that demonstrates this.
Weighting: The author doesn't even have the basic facts straight, the CPI-U (what is used for colas, etc) doesn't use a geometric mean, there is another index CPI-U-XG that does though.
Hedonics: Again, no concrete evidence is provided that this is some how a bad thing. The idea beyond this is rather simple, in today's work products are quickly changing so you have to look not only at the price but what you are getting for the price. This issue doesn't, of course, effect basic products like bread etc.
C'mon guys...instead of pulling up rubbish from the internet why not read the numerous studies that went into the changes? The changes that were implemented were being researched, again usually by non-government entities, years before CPI was changed. CPI was changed in response to research.
Ok user_id I will try to argue with you.
So why did they not include food, healthcare, and energy the basics of life in the cpi? eh?
The most important ones they do not include while they only include crap such as coke? give me a break.
GO to the grocery store for once. LOOK AT THE PRICES.
orange juice? they made it 59 oz instead to try to trick the public for gods sake. it costs at least 25-50% more for orange juice.
Rice costs much more than a few years back. now it is about 25-50% more again.
wheat? bread costs about 50-60% more if you buy store brand. the cheapest one.
Hello wake the heck up. BASICs of life = inflation to death.
Luxury goods who the heck cares in the cpi. Why they included and not include the main components of life, I wonder why?
Is it to fudge the numbers why yes of course. :P
Even you recognize that in your argument you cannot deny it.
UNLESS THEY INCLUDE THE BASICS OF LIFE CPI IS CRAP.
there is no reason to debate it.with the release this week of the gov't numbers that showed the last decade saw food and energy rise 200% and everything else 25%...
ask yourself if your expenses and cost of living is way higher then 10 years ago and only up 25% max,, i know mine isnt even close to only have risen 25% and i live in a rent stabilizred apartment where our rent increased 45%. except for electronics im hard pressed to find much that only rose 25% in 10 years... that will answer the age old argument..
Last edited by mathjak107; 11-20-2010 at 11:47 AM..
Well next time you are in the supermarket take a look at that 1lb can of coffee. It's no longer 1lb but costs the same. It's now only 13oz.
Soda (brand name) was 4/$10 and is now 3/$10 when on sale.
Gatorade went from $.98 to $1.18
Milk went from $3.99 to $4.29
Dog food (pedigree) went from $.89 to $1.18
Lettuce went from $.98 to $1.28
(central Texas near Austin)
This is what I know offhand from food shopping every week.
And the best measure is what affects us day to day such as things on this list. I purchased some ground turkey that I always buy. 5 dollars and change. Up from 3 and change for the same package a short time ago.
food was not something i wasnt disputing. that they said was up 200% and while im not so sure its alot more then that too ,food can be very volatile. its all the other stuff in the cores of these indexes that is more troublesome. no way is that stuff up only 25% over the decade but if you play with the numbers enough and change the way things are measured you can get any numbers you like ..
defending the accuracy of those indexes is like trying to convince the rest of america the world is flat once we saw what they showed for a decade of increases..
there is no reason to debate it.with the release this week of the gov't numbers that showed the last decade saw food and energy rise 200% and everything else 25%...
These aren't the facts. CPI shows that food has gone up approximately 30% over the last 10 years and energy has gone up approximately 60%. You can find graphs for all of this via FRED:
Anyhow, personal anecdotes are not relevant, the people that suggest that CPI is under-reporting the actual price increases need to demonstrate this view. Where are the alternate indexes, etc? They are never cited, yet if the claim was true, every major bank in the country would have one. Reliable CPI data is important for just about every industry in the country, if the government's numbers were unreliable they'd look else where.
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