Re: Fraud in the CPI

On Sat, 1 Dec 2007 11:04:48 -0600, "John Galt"
<whoisjohngalt@xxxxxxxxxxxxxx> wrote:


"Rumpelstiltskin" <PleaseDoNotReplyByEmail@xxxxxxxxxxx> wrote in message
news:1t03l31dcvs7ilrt7n4f8st63ncr6nd3ot@xxxxxxxxxx
On Sat, 1 Dec 2007 06:50:28 -0600, "John Galt"
<whoisjohngalt@xxxxxxxxxxxxxx> wrote:


"mg" <mgkelson@xxxxxxxxx> wrote in message


<snip>


I think my confidence level in their calculations would be higher, if
they only allowed for upward substitutions. If they were to do that,
then they could definitely say that the calculation has not adversely
effected the quality of life. In other words, I would like the
bastards to change the system so that the base calculation is for
hamburger and then allow for steak substitutions, for instance, if the
price of hamburger goes up.

Are you sure that such is *not* adjusted for? (Obviously, the price of
steak
can never be less than the price of hamburger, but if the consumer were to
start purchasing steak at a buck a pound after hamburger rises to 5 bucks,
????)



Steak is steak and hamburger is hamburger. That's not
complex. One is generally agreed to be a "better" lifestyle
than the other (though I might not agree in the case of
Las Vegas Prime Rib which I think is ghastly despite that
I'm an ardent beefivore).

There has never been any suggestion, in any Social Security document (which
is the the context we're discussing this in) that the purpose of Social
Security and the CPI was to "maintain a person's lifestyle."

It's a safety net program designed to replace a portion of personal
retirement income.



But the question at present, is it not, is whether the official
CPI genuinely preserves the buying power that it used to.
Substituting hamburger or steak would not be an example
of "preserving the buying power that it used to."





JG


That is, unless rich people have
to buy rowboats instead of yachts, but their lifestyle is
unchanged because they've merely made a substitution
and they still have boats.

"It is mere cozenage all."


<snip>


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