Re: Fraud in the CPI


"Gary" <none@xxxxxxx> wrote in message
news:0ct0l3h381qv2l7ckkmki9arai7s73k0bu@xxxxxxxxxx
On Fri, 30 Nov 2007 14:22:30 -0600, "John Galt"
<whoisjohngalt@xxxxxxxxxxxxxx> wrote:


"phil scott" <phil@xxxxxxxxxxxxx> wrote in message
news:6f781376-f25a-40b5-95e9-29591929b6c8@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
FRAUD IN THE CPI and other govt measures.


US govt spins the stats to achieve ends that are decimating the US
middle class, as it collapses it own tax base and national
viability.


My comments on just part of the stat spin.

- CPI leaves out key cost factors such as fuel, food and medical
care, all into high double digit inflation as the CPI reports just
2.3% lately... to keep social security adjustments deep into the
starvation band.

This is simply not correct. BLS website:

http://www.bls.gov/cpi/cpifaq.htm#Question_6

7. What goods and services does the CPI cover?
The CPI represents all goods and services purchased for consumption by the
reference population (U or W) BLS has classified all expenditure items
into
more than 200 categories, arranged into eight major groups. Major groups
and
examples of categories in each are as follows:

a.. FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine,
service meals and snacks)
b.. HOUSING (rent of primary residence, owners' equivalent rent, fuel
oil,
bedroom furniture)
c.. APPAREL (men's shirts and sweaters, women's dresses, jewelry)
d.. TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle
insurance)
e.. MEDICAL CARE (prescription drugs and medical supplies, physicians'
services, eyeglasses and eye care, hospital services)
f.. RECREATION (televisions, pets and pet products, sports equipment,
admissions);
g.. EDUCATION AND COMMUNICATION (college tuition, postage, telephone
services, computer software and accessories);
h.. OTHER GOODS AND SERVICES (tobacco and smoking products, haircuts and
other personal services, funeral expenses).
*******************************

What you're describing is the CORE CPI, which leaves out the items you
cite
due to their volatility. However, there is NO BENEFIT COST OF LIVING INDEX
tied to the core CPI -- it is used as an economic indicator ONLY.

JG

My two cents says the BLS are liars.


If oil prices went from $30 a barrel to $100 a barrel and then back to
$30, that would be volatile. When they go up and STAY up, that is
not volatile -- that is inflation.

And that's reflected in the CPI, just as they say. What economist do with
the core CPI, which is *not* used for any COLAs, is of no concern to
laypeople.

JG


.

Relevant Pages

  • Re: Fraud in the CPI
    ... US govt spins the stats to achieve ends that are decimating the US ... CPI leaves out key cost factors such as fuel, ... You are talking about the so-called "core" CPI. ...
    (soc.retirement)
  • Re: Fraud in the CPI
    ... US govt spins the stats to achieve ends that are decimating the US ... CPI leaves out key cost factors such as fuel, ... It is up to you to look at the real CPI. ...
    (soc.retirement)
  • Re: CPI a fraud?
    ... >> rent prices are not included. ... >CPI provides both numbers because energy and food are very volatile. ...
    (sci.econ)