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When measuring the buying power of the US dollar, it's important to look at a broad based basket of goods that is consistent with how Americans spend their mone
by harryh 6y ago
When measuring the buying power of the US dollar, it's important to look at a broad based basket of goods that is consistent with how Americans spend their money. Focusing on just a few items that have gotten more expensive will deliver an incorrect result.
- fakedang 6y agoAnd yet they are delivering an incorrect result, since the 3 key goods are enablers of the rest of the basket. Without an college education (and thus a reasonable job these days), adequate healthcare or a proper roof over your head near your employer, you're not going to be buying cars or electronics. And I'm not alone in the economics field for criticizing the CPI, yet somehow a bunch of HNers find the very idea of it repulsive.
- harryh 6y agoWithout food, clothing or energy you're not going to be buying cars or electronics either. At the end of the day, you gotta measure inflation based on where people are actually spending their money. Not on an arbitrary ranking of which goods are "enablers of the rest of the basket."