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The problem is that the CPI is pretty awful at identifying how much the expenses of those struggling most have changed, despite it being one of the figures most

by Jochim 3y ago

The problem is that the CPI is pretty awful at identifying how much the expenses of those struggling most have changed, despite it being one of the figures most commonly brought up in discussion. Someone who could only afford to purchase the cheapest essentials experienced a much larger increase in their living costs than the CPI would indicate. Yet it's still used, despite how misleading it is.

gruez 3y ago
1. Wage data actually shows that the poorest are actually experiencing the highest wage gains, in percentage terms. Inequality is actually decreasing. 2. The CPI might not be perfect, but it's still better than a vague handwavy argument backed by zero statistics.
- Jochim 3y ago
  > 1. Wage data actually shows that the poorest are actually experiencing the highest wage gains, in percentage terms. Inequality is actually decreasing. 1. The wealthy don't typically look to increase their wages, mainly because it's much harder to dodge tax on them. 2. Only if the only statistic you look at is how much wages have increased in the last year, ignoring all of the other statistics like rent, rising food/energy insecurity, a decrease in retail volume yet increased revenue, etc. > 2. The CPI might not be perfect, but it's still better than a vague handwavy argument backed by zero statistics. Who said anything about being handwavy or lacking statistics? We have freely available data on how many people are using food banks, how much energy prices and rent have risen, on the much greater rise in the cost of supermarket own brand goods as compared to branded goods, etc. We know for a fact that people are spending more and buying less. I'm not sure it takes a genius to understand that the people who were already struggling are going to suffer a much greater drop in their quality of life than the class whose main gripe is how "sad" it made them to raise their rents or lay off employees.
  - gruez 3y ago
    >1. The wealthy don't typically look to increase their wages, mainly because it's much harder to dodge tax on them. The wage data in question[1] divides population by quartiles. This isn't comparing some minimum wage worker to jeff bezos. [1] https://www.atlantafed.org/chcs/wage-growth-tracker https://www.atlantafed.org/chcs/wage-growth-tracker >2. Only if the only statistic you look at is how much wages have increased in the last year, ignoring all of the other statistics like rent Instead of cherry picking a specific CPI component, why not look at the entire CPI? > rising food/energy insecurity source? > a decrease in retail volume yet increased revenue, etc. Maybe that's because the covid stimulus/savings bonanza has stopped? >Who said anything about being handwavy or lacking statistics? We have freely available data on how many people are using food banks, how much energy prices and rent have risen, on the much greater rise in the cost of supermarket own brand goods as compared to branded goods, etc. Present them, then.

by Jochim 3y ago

gruez 3y ago

1. Wage data actually shows that the poorest are actually experiencing the highest wage gains, in percentage terms. Inequality is actually decreasing. 2. The CPI might not be perfect, but it's still better than a vague handwavy argument backed by zero statistics.

Jochim 3y ago
> 1. Wage data actually shows that the poorest are actually experiencing the highest wage gains, in percentage terms. Inequality is actually decreasing. 1. The wealthy don't typically look to increase their wages, mainly because it's much harder to dodge tax on them. 2. Only if the only statistic you look at is how much wages have increased in the last year, ignoring all of the other statistics like rent, rising food/energy insecurity, a decrease in retail volume yet increased revenue, etc. > 2. The CPI might not be perfect, but it's still better than a vague handwavy argument backed by zero statistics. Who said anything about being handwavy or lacking statistics? We have freely available data on how many people are using food banks, how much energy prices and rent have risen, on the much greater rise in the cost of supermarket own brand goods as compared to branded goods, etc. We know for a fact that people are spending more and buying less. I'm not sure it takes a genius to understand that the people who were already struggling are going to suffer a much greater drop in their quality of life than the class whose main gripe is how "sad" it made them to raise their rents or lay off employees.
- gruez 3y ago
  >1. The wealthy don't typically look to increase their wages, mainly because it's much harder to dodge tax on them. The wage data in question[1] divides population by quartiles. This isn't comparing some minimum wage worker to jeff bezos. [1] https://www.atlantafed.org/chcs/wage-growth-tracker https://www.atlantafed.org/chcs/wage-growth-tracker >2. Only if the only statistic you look at is how much wages have increased in the last year, ignoring all of the other statistics like rent Instead of cherry picking a specific CPI component, why not look at the entire CPI? > rising food/energy insecurity source? > a decrease in retail volume yet increased revenue, etc. Maybe that's because the covid stimulus/savings bonanza has stopped? >Who said anything about being handwavy or lacking statistics? We have freely available data on how many people are using food banks, how much energy prices and rent have risen, on the much greater rise in the cost of supermarket own brand goods as compared to branded goods, etc. Present them, then.