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?
Do they modify the basket to get the numbers they want? Absolutely.
CPI, by 1970's measurement, would be higher
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.
quote:Government program growth (i.e., Social Security) is tied to CPI. Lower inflation numbers = lower cost of government.
Why on earth would a government statistician care one way or another?
quote:Look up "The Boskin Commission".
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".
The findings where that inflation was OVER-stated
quote:I have no idea. But if the counter is that CPI is not manipulated, that would be a fallacious belief.
Is that what's being alleged in this thread by the conspiracy guys?
quote:Is it your contention CPI is not manipulated, or are you just mouthing off.
If you all think the government is this good at doing things, then you should be making a mad scramble for single payer.
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.
quote:I haven't waded thru all of this thread, but FWIW there seems to be mixing of concepts here.
Well that is kinda the point
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.
quote:Not for CPI.
In other words, we have to include wage inflation as a consideration.
I don't believe any government number. Especially not coming form the Obama Regime.