I believe the blue line in the following chart:
Posted on 12/23/2012 10:30:36 AM PST by arthurus
But the manipulation of the data did not stop there. Aside from the weighting changes the BLS instituted a system of “hedonic” adjustments. Hedonics adjusts the prices of goods for the increased pleasure the consumer derives from them.
“That new washing machine you bought did not cost you 20% more than it would have cost you last year, because you got an offsetting 20% increase in the pleasure you derive from pushing its new electronic control buttons instead of turning that old noisy dial, according to the BLS.
When gasoline rises 10 cents per gallon because of a federally mandated gasoline additive, the increased gasoline cost does not contribute to inflation. Instead, the 10 cents is eliminated from the CPI because of the offsetting hedonic thrills the consumer gets from breathing cleaner air. The same principle applies to federally mandated safety features in automobiles. I have not attempted to quantify the effects of questionable quality adjustments to the CPI, but they are substantial.”
(Excerpt) Read more at zerohedge.com ...
Same with milk, eggs, bacon ..
Maybe you missed this part of my post:
The same holds true for almost any product or service that involves technology that has advanced considerably over time.
The government learned the lessons of the Carter years well. We will never again see inflation, unemployment, and other numbers that accurately tell us the state of the economy.
The labor stats are outright lies. The inflation numbers are outright lies. Money supply is incleasng at an exponential rate. Prices on most everything have doubled from 2000. yet, we have almost zero inflation.
And gold has also exploded in price from 2000 because there is no inflation./
That’s why the Baraqqi Coalition has been so successful.
Combine hard left ideology, the tactics of the Chicago political mob, and the full fledged support of the MSM and you have a formidable force.
Up is down, black is white, and there’s no inflation.
Yes as the old Hunkeys used to say in Cleveland:
Dat’s boolsheet!
Much better if you like "traction control" that brakes wheels randomly until it breaks. Or airbags that may injure seat belt wearers but otherwise do nothing except cost 1000's to replace after a minor accident. The 1000 miles of extra wiring that adds unreliability. Or the air pressure sensors in a tire (how hard is it to look at a tire?) which break and then cost $100+ a piece. Oh yeah, I should also point out almost all of this crap is required by federal law. Mini spare tire, much better, yeah right. Now cars come with a much better can of fix-a-flat and no spare at all. I won't even go into the much better pollution control so we can breath from the tailpipe.
Yes only on FR do we talk about the "Big Education" cycle
1) Govt makes unlimited loans to students
2) Schools raise prices to soak up available funds
3) Schools pay profs and administrators excessive salaries
4) Profs and admins donate heavily to Democrats
and repeat
-PJ
I have to say that's a pretty substantial snack for one afternoon.
If the government didn't increase the number of dollars in circulation, inflation wouldn't exist.
If the government didn't increase the number of dollars in circulation, inflation wouldn't exist.
The EBT crowd doesn't know, and doesn't care. Why should they?
Bottom line is this, while their may have been some improvements on things over the years the main reason prices are so high is because the dollar is worth a lot less due to inflation, and the constant wage increase with corresponding price increases to offset them haven't helped either.
That is what they have been up to for the last fifty years.
The transformation is complete - as the French say: "Ze joke, she is over."
First, despite the name, hedonic price indexes attempt to correct price changes for improved quality, not for pleasure. It's hard to do, and I've discussed this with folks from the government who try to do it. However, it's necessary. If prices weren't adjusted for quality changes, the resulting price index would be completely meaningless.
Second, the current CPI is a flat-out lie, which has nothing to do with hedonic indexing. They've eliminated the things people buy most, such as food and gasoline, on the grounds that these prices are "volatile," and by eliminating them they're getting at so-called "core inflation." This is simply an excuse for fudging the data.
Do tell. What milk , egg and bacon technology has advanced over the past four years to justify its increase? I thought tech was supposed to create greater efficiencies. Or did you go to some business school where they teach you to increase efficiency in order to increase costs?
It's because it is different from reality.
yeah, the first three go down easy, i gotta force the last two down... 8^)
That formula is now being applied to our food market.
1) Govt gives EBT handouts to increasing portion of population
2) Grocers raise prices to soak up available funds
3) Government pays Food Stamp administrators excessive salaries
4) Food stamp administrators and recipients donate to and vote for Democrats.
We have passed the point of no return
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