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> How is it gamed? The totally subjective hedonic quality adjustment (sure food is more expensive but iPads have more ram!), also this knife only ever seems to

> How is it gamed? The totally subjective hedonic quality adjustment (sure food is more expensive but iPads have more ram!), also this knife only ever seems to cut one way, enshittification doesn't have a inflationary effect like you would expect. Owner imputed rent as opposed to looking at what consumers actually pay. The basket of goods is unrealistic, most households don't have teams of economists putting their shopping list together in order to maximally limit inflation.

1980phipsi 3y ago
There is owner imputed rent and rent. It’s two separate categories. Owner imputed rent is meant to capture the implied rent that home owners pay themselves. The old method used interest costs, which historically didn’t do a good job because if you lock in a 30-year mortgage rate then you have no inflation if rates rise. You don’t know what you’re talking about.
gruez 3y ago
>The totally subjective hedonic quality adjustment (sure food is more expensive but iPads have more ram!), also this knife only ever seems to cut one way, enshittification doesn't have a inflationary effect like you would expect. Quality adjustment is only active for a few basket items, and their contribution to the overall cpi is minimal. All the extra food inflation that's supposedly happening isn't being held back by faster iPads. >Owner imputed rent as opposed to looking at what consumers actually pay. Most Americans are homeowners. For them, they don't pay any rent. Pretending that they pay market rent has no relation to what their actual expenses are. How do you propose we capture their expenses? >The basket of goods is unrealistic, most households don't have teams of economists putting their shopping list together in order to maximally limit inflation. Here's the basket the bls uses: https://www.bls.gov/cpi/tables/relative-importance/2022.htm https://www.bls.gov/cpi/tables/relative-importance/2022.htm What specific parts do you think is "unrealistic", and what values would you use instead?

1980phipsi 3y ago

There is owner imputed rent and rent. It’s two separate categories. Owner imputed rent is meant to capture the implied rent that home owners pay themselves. The old method used interest costs, which historically didn’t do a good job because if you lock in a 30-year mortgage rate then you have no inflation if rates rise. You don’t know what you’re talking about.

gruez 3y ago

>The totally subjective hedonic quality adjustment (sure food is more expensive but iPads have more ram!), also this knife only ever seems to cut one way, enshittification doesn't have a inflationary effect like you would expect. Quality adjustment is only active for a few basket items, and their contribution to the overall cpi is minimal. All the extra food inflation that's supposedly happening isn't being held back by faster iPads. >Owner imputed rent as opposed to looking at what consumers actually pay. Most Americans are homeowners. For them, they don't pay any rent. Pretending that they pay market rent has no relation to what their actual expenses are. How do you propose we capture their expenses? >The basket of goods is unrealistic, most households don't have teams of economists putting their shopping list together in order to maximally limit inflation. Here's the basket the bls uses: https://www.bls.gov/cpi/tables/relative-importance/2022.htm https://www.bls.gov/cpi/tables/relative-importance/2022.htm What specific parts do you think is "unrealistic", and what values would you use instead?