Re: Fraud in the CPI


"Rumpelstiltskin" <PleaseDoNotReplyByEmail@xxxxxxxxxxx> wrote in message
news:n6d5l3p1tafejg7fqn1qporb94foc7cu78@xxxxxxxxxx
On Sun, 2 Dec 2007 07:07:56 -0600, "John Galt"
<whoisjohngalt@xxxxxxxxxxxxxx> wrote:

<snip>


A rigid, no-subs policy obviously results in a higher CPI, which is
obviously good for SS receipients. However, it doesn't accurately model
the
inflation in the economy.


If it "obviously" results in higher CPI, doesn't that
mean that the current situation is "obviously"
understated? Unbiased substitutions shouldn't
all trend the same way if they're really unbiased.

No. The objective is to accurately model inflation in the economy. This is
not a simple task, economists disagree on how best to do this, and further,
opinions on the matter evolve as the art of economics becomes more advanced,
economists advance new and better ideas as to how to do it, etc.

I do buy frozen ground beef, but right now "steak"
is on my shopping list for the next trip to Costco but
hamburger isn't, even though I still have some of
both in my freezer.

Maybe we should have a pet-food index, counting
the number of people who are living on pet food
because it's cheaper, today versus ten years ago.
(I've never known anybody who does live on pet
food, but I'm assured by urban-legendists that there
are some.)

Well, I'm sure their legends are .... urban.

JG








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