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If they didn't do those things, then wouldn't we just get a flagrant_taco from an alternate dimension who would instead argue about how CPI doesn't account for

If they didn't do those things, then wouldn't we just get a flagrant_taco from an alternate dimension who would instead argue about how CPI doesn't account for changes in consumer preference over time or how a cell phone in 2023 is different from one in 2003?

HumblyTossed 3y ago
There should be two parts to the list. A constant long term index and a shorter term more variable one.
- sokoloff 3y ago
  Would the long term index have a horse-drawn carriage, a butter churn, a typewriter, a 50# block of ice for the icebox, and a rotary dial phone in it? At some point, even the long-term index can't be constant.
flagrant_taco 3y ago
If they listed both that would make sense, that's commonplace when listing net vs gross revenue, nominal vs real GDP, etc
- Balgair 3y ago
  But then they would just have to make a list of each year's CPI basket and it's changes, and then have to calculate that going forward for forever. Like, the differences in the 1991 basket to the 1992 basket are pretty small (please, someone, double check this). But the differences in the 1991 basket to the 2019 basket are larger, for example. So it would seem to me to be a bit silly to have to update the prices of the 1991 basket all the way to today, especially when you're updating the 1992 basket as well, and every other year. I'm not a CPI expert person, so if there is someone that really does understand these things in depth, please chime in!
  - nradov 3y ago
    Furthermore, some of the items in the 1991 basket are no longer even available at any price. What's the price today for a new 25 inch analog CRT TV?
    - creer 3y ago
      But that IS part of the problem. Obviously without looking back 12 years for a day to day practical result (but still looking that far for long term economics concerns.) A "normal TV" now is a smart (spit) TV which compromises privacy and viewing experience and durability - but which is sold massively cheaper than a plain TV as defined perhaps 6 years ago. You have to dig hard to find a plain TV and it's more expensive. Do you count "smart" as a positive hedonic feature? Or do you count the effort necessary to find a plain TV in the price increase of a plain TV? Do you compensate for much other price increases just because a "normal TV" is now much less expensive and (allegedly) more hedonic?
  - creer 3y ago
    And they could exactly do that. That's what computers are for.
    - SantalBlush 3y ago
      Not even close. The BLS hires workers to collect price data from retailers on-site for their CPI computations.
      - creer 3y ago
        The question was about offering multiple versions of the resulting statistics summary. Based on various starting dates, theories and such - something like output that could be explored or dialed including dialing which CPI method to use. That would explode the amount of reporting. It's not about data collection.
        SantalBlush 3y ago
- JumpCrisscross 3y ago
  > If they listed both that would make sense They provide their raw data [1]. You can reconstruct the index however you want. There is an entire industry of consultants who create custom benchmarks for planners. For personal purposes, your metropolitan area's CPI is a better metric to watch than the national number. [1] https://www.bls.gov/cpi/tables/ https://www.bls.gov/cpi/tables/

HumblyTossed 3y ago

There should be two parts to the list. A constant long term index and a shorter term more variable one.

sokoloff 3y ago
Would the long term index have a horse-drawn carriage, a butter churn, a typewriter, a 50# block of ice for the icebox, and a rotary dial phone in it? At some point, even the long-term index can't be constant.

flagrant_taco 3y ago

If they listed both that would make sense, that's commonplace when listing net vs gross revenue, nominal vs real GDP, etc

Balgair 3y ago
But then they would just have to make a list of each year's CPI basket and it's changes, and then have to calculate that going forward for forever. Like, the differences in the 1991 basket to the 1992 basket are pretty small (please, someone, double check this). But the differences in the 1991 basket to the 2019 basket are larger, for example. So it would seem to me to be a bit silly to have to update the prices of the 1991 basket all the way to today, especially when you're updating the 1992 basket as well, and every other year. I'm not a CPI expert person, so if there is someone that really does understand these things in depth, please chime in!
- nradov 3y ago
  Furthermore, some of the items in the 1991 basket are no longer even available at any price. What's the price today for a new 25 inch analog CRT TV?
  - creer 3y ago
    But that IS part of the problem. Obviously without looking back 12 years for a day to day practical result (but still looking that far for long term economics concerns.) A "normal TV" now is a smart (spit) TV which compromises privacy and viewing experience and durability - but which is sold massively cheaper than a plain TV as defined perhaps 6 years ago. You have to dig hard to find a plain TV and it's more expensive. Do you count "smart" as a positive hedonic feature? Or do you count the effort necessary to find a plain TV in the price increase of a plain TV? Do you compensate for much other price increases just because a "normal TV" is now much less expensive and (allegedly) more hedonic?
- creer 3y ago
  And they could exactly do that. That's what computers are for.
  - SantalBlush 3y ago
    Not even close. The BLS hires workers to collect price data from retailers on-site for their CPI computations.
    - creer 3y ago
      The question was about offering multiple versions of the resulting statistics summary. Based on various starting dates, theories and such - something like output that could be explored or dialed including dialing which CPI method to use. That would explode the amount of reporting. It's not about data collection.
      - SantalBlush 3y ago
JumpCrisscross 3y ago
> If they listed both that would make sense They provide their raw data [1]. You can reconstruct the index however you want. There is an entire industry of consultants who create custom benchmarks for planners. For personal purposes, your metropolitan area's CPI is a better metric to watch than the national number. [1] https://www.bls.gov/cpi/tables/ https://www.bls.gov/cpi/tables/