Do any of y'all believe the governments inflation numbers? - Page 3 - TigerDroppings.com

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SpidermanTUba
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Member since May 2004
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re: Do any of y'all believe the governments inflation numbers?


quote:

Nope, not when all they have to do is modify the "basket of goods" CPI is based on.


Are you suggesting they actually modify the basket retroactively to get the numbers they want? Is there any evidence of that or did you make it up?








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NC_Tigah
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Member since Sep 2003
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re: Do any of y'all believe the governments inflation numbers?


quote:


Are you suggesting they actually modify the basket retroactively to get the numbers they want? Is there any evidence of that or did you make it up?
Retroactively?
No.

Do they modify the basket to get the numbers they want? Absolutely.

CPI, by 1970's measurement, would be higher






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SpidermanTUba
LSU Fan
Member since May 2004
28229 posts

re: Do any of y'all believe the governments inflation numbers?


quote:

Retroactively?
No.

Do they modify the basket to get the numbers they want? Absolutely.


Then they've have to be able to predict what the prices would be in the future in order to modify the basket to get a desired future result! Are you suggesting the government can actually predict prices that well? If that's the case then I'd suggest that would be the more newsworthy item!


quote:


CPI, by 1970's measurement, would be higher



So the government was able to predict prices up to 43 years in advance and modified the CPI in the 1970's in order to falsely represent inflation even this far later?


Why on earth would a government statistician care one way or another?



This post was edited on 9/13 at 5:08 pm


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HortensePowdermaker
Grambling Fan
Member since Feb 2013
696 posts

re: Do any of y'all believe the governments inflation numbers?


quote:

Let me ask you this, what do you think the exact purpose of the CPI index is? If its to track consumer spending habits, then it works great. If it is to accurately reflect the increase in costs for basic necessities, replacing OJ with Tang in the basket of goods doesn't really show the whole truth. Thats all I meant by my original statement.


They say it's to track inflation. I'm sure it's subject ex-post-facto to all sorts of political misuse. But I don't buy into any of the conspiracies. Has OJ actually been replaced by Tang or is that just a hypothetical?






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NC_Tigah
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Member since Sep 2003
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re: Do any of y'all believe the governments inflation numbers?


quote:


Why on earth would a government statistician care one way or another?
Government program growth (i.e., Social Security) is tied to CPI. Lower inflation numbers = lower cost of government.
quote:

So the government was able to predict prices up to 43 years in advance and modified the CPI in the 1970's in order to falsely represent inflation even this far later?
Look up "The Boskin Commission".






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HortensePowdermaker
Grambling Fan
Member since Feb 2013
696 posts

re: Do any of y'all believe the governments inflation numbers?


quote:

Look up "The Boskin Commission".


The findings where that inflation was OVER-stated. Is that what's being alleged in this thread by the conspiracy guys?

If you all think the government is this good at doing things, then you should be making a mad scramble for single payer.






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NC_Tigah
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Member since Sep 2003
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re: Do any of y'all believe the governments inflation numbers?


quote:

The findings where that inflation was OVER-stated
Correct
quote:

Is that what's being alleged in this thread by the conspiracy guys?
I have no idea. But if the counter is that CPI is not manipulated, that would be a fallacious belief.

quote:

If you all think the government is this good at doing things, then you should be making a mad scramble for single payer.
Is it your contention CPI is not manipulated, or are you just mouthing off.






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HortensePowdermaker
Grambling Fan
Member since Feb 2013
696 posts

re: Do any of y'all believe the governments inflation numbers?


quote:

Is it your contention CPI is not manipulated, or are you just mouthing off.


I've already said - like almost anything - it is no doubt subject to political misuse.






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LSUnation78
LSU Fan
Northshore
Member since Aug 2012
1441 posts

re: Do any of y'all believe the governments inflation numbers?


Sorry if I came across as a beleiver in some grand conspiracy. I was a finance major so I just see things as kinda factual. As in I know for a fact they change the basket of goods over time. Wether its for political purposes or not doesn't change the fact (to me) its not really a great indicator of actual inflation over the past several decades.

As for the tang, it was an example my econ professor used several years ago. Wether he ment it as fact, or was just painting a picture, I can't say.






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Wishnitwas1998
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Walls, Ms
Member since Oct 2010
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re: Do any of y'all believe the governments inflation numbers?


quote:

I've already said - like almost anything - it is no doubt subject to political misuse.


Well that is kinda the point






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HortensePowdermaker
Grambling Fan
Member since Feb 2013
696 posts

re: Do any of y'all believe the governments inflation numbers?


quote:

Wether its for political purposes or not doesn't change the fact (to me) its not really a great indicator of actual inflation over the past several decades.


I don't know if it is or isn't in the long-run. I wouldn't be surprised at all to find out that it's basically acceptably accurate over a 40 year time series. I mean, in this thread alone, we are hearing it's both over and under reporting inflation.

And what about wage inflation? Doesn't seem like anyone ever talks about that.






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NC_Tigah
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re: Do any of y'all believe the governments inflation numbers?


quote:

Well that is kinda the point
I haven't waded thru all of this thread, but FWIW there seems to be mixing of concepts here.

Inflation and Purchasing Power
are usually inversely related -- as inflation rises, purchasing power decreases. But they are economically separate.

If economic growth and average income outstrips inflation, purchasing power rises, as does SOL. In that circumstance a loaf of bread may double in price (inflation), but if income has increased 3-fold over the same timespan, bread is relatively cheaper.






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CITWTT
LSU Fan
baton rouge
Member since Sep 2005
31765 posts

re: Do any of y'all believe the governments inflation numbers?


Milk is not volatile idiot it is govt set price controlled by our friends in DC.





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HortensePowdermaker
Grambling Fan
Member since Feb 2013
696 posts

re: Do any of y'all believe the governments inflation numbers?


quote:

Inflation and Purchasing Power
are usually inversely related -- as inflation rises, purchasing power decreases. But they are economically separate.

If economic growth and average income outstrips inflation, purchasing power rises, as does SOL. In that circumstance a loaf of bread may double in price (inflation), but if income has increased 3-fold over the same timespan, bread is relatively cheaper.


In other words, we have to include wage inflation as a consideration.






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NC_Tigah
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Member since Sep 2003
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re: Do any of y'all believe the governments inflation numbers?


quote:

In other words, we have to include wage inflation as a consideration.
Not for CPI.

In determining effect of CPI on Std of Living, absolutely. Avg household income, unemployment, Gini, and rate of subsidy would all be important.






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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Do any of y'all believe the governments inflation numbers?


Here's a nice inflation propaganda film MGM made in 1933 to help sell the idea to the American people





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Crow Pie
New Orleans Saints Fan
Heart of Lafayette
Member since Feb 2010
9715 posts

re: Do any of y'all believe the governments inflation numbers?


quote:

I don't believe any government number. Especially not coming form the Obama Regime.

This country will come apart at the seams as soon as Obombas second term is done. It is a house of cards. fact.






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