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The MIT billion prices project. They basically wrote a program to go out and index a bunch of prices on the internet and see how they change. The results are
by JamesBarney 9y ago
The MIT billion prices project. They basically wrote a program to go out and index a bunch of prices on the internet and see how they change.
The results are pretty similar to the CPI.
Do you have any specific complaints against the CPI? It's actually a pretty well thought out measure.
- wyldfire 9y agoIf housing is excluded from CPI, why is it excluded? I'll agree that people make housing decisions infrequently, but it still seems like it should be reflected somehow with some weight into the index.
- occamrazor 9y agoBecause buying a house is considered an investment, not a cost. Other housing related costs (e.g. renovations, maintenance, etc.) are included in CPI.
- maxerickson 9y agoHousing isn't excluded from the CPI, it is one of the major components of the CPI. There's all sorts of information about how it is calculated on bls.gov.
- JamesBarney 9y agoBuying a house is excluded, but renting is included. This is because buying a house is an investment, and CPI is meant to track consumption.
- maxerickson 9y agoIt factors in the rental value of owner occupied housing, they attempt to exclude the investment value of the property and recognize the shelter value.
- lotsofpulp 9y agoHealthcare costs are not accurately represented, and almost all families are just one medical emergency away from losing everything. Also, increasing government taxes, fees, and decreasing quality of government infrastructure and services.