Interesting Site

[permabear]

Have you read this? http://www.shadowstats.com/article/special-comment

[Anonymous]

The inflation numbers have to be bogus. He claims that inflation has been well above 5%, averaging around 7-8%, or so, since 1988.

This would mean that most prices today would be about five times what they were in ’88.

At that rate, a typical midsize car (Accord/Camry) that cost $15K in ’88 would cost about $75K today.

The componding nature of inflation exposes his bias, as well as some of his reasoning:

Getting more into the hedonics area, I’ll get personal. I use two personal computer systems purchased about 10 years apart for roughly the same price in nominal terms, about $800. While the most recent computer has greater memory and is faster than my old system, both systems generally perform the same tasks for me. Based on the BLS’s adjustments to computer prices, in terms of quality/hedonics, my old system should have been replaceable for about $85.00 in current dollars, which was not doable. I do have a nicer picture screen, with the new system, but I also unexpectedly had to buy a new printer, because the new system was not able to function with my antique work-horse printer. The new computer also was not able to use certain key programs that had not been rewritten to the standards of the new [sic?] system. How does one compare and value such systems in the CPI? While some quality adjustment in the case of computers seems appropriate, I argue it has been heavily overdone from the practical standpoint of the average consumer.

Apparently the guy has never heard of eBay, and feels he should never have to replace his rotary phone.

[Anonymous]

The inflation numbers have to be bogus. He claims that inflation has been well above 5%, averaging around 7-8%, or so, since 1988.

This would mean that most prices today would be about five times what they were in ’88.

At that rate, a typical midsize car (Accord/Camry) that cost $15K in ’88 would cost about $75K today.

The componding nature of inflation exposes his bias, as well as some of his reasoning:

Getting more into the hedonics area, I’ll get personal. I use two personal computer systems purchased about 10 years apart for roughly the same price in nominal terms, about $800. While the most recent computer has greater memory and is faster than my old system, both systems generally perform the same tasks for me. Based on the BLS’s adjustments to computer prices, in terms of quality/hedonics, my old system should have been replaceable for about $85.00 in current dollars, which was not doable. I do have a nicer picture screen, with the new system, but I also unexpectedly had to buy a new printer, because the new system was not able to function with my antique work-horse printer. The new computer also was not able to use certain key programs that had not been rewritten to the standards of the new [sic?] system. How does one compare and value such systems in the CPI? While some quality adjustment in the case of computers seems appropriate, I argue it has been heavily overdone from the practical standpoint of the average consumer.

Apparently the guy has never heard of eBay, and feels he should never have to replace his rotary phone.

[Anonymous]

The inflation numbers have to be bogus. He claims that inflation has been well above 5%, averaging around 7-8%, or so, since 1988.

This would mean that most prices today would be about five times what they were in ’88.

At that rate, a typical midsize car (Accord/Camry) that cost $15K in ’88 would cost about $75K today.

The componding nature of inflation exposes his bias, as well as some of his reasoning:

Getting more into the hedonics area, I’ll get personal. I use two personal computer systems purchased about 10 years apart for roughly the same price in nominal terms, about $800. While the most recent computer has greater memory and is faster than my old system, both systems generally perform the same tasks for me. Based on the BLS’s adjustments to computer prices, in terms of quality/hedonics, my old system should have been replaceable for about $85.00 in current dollars, which was not doable. I do have a nicer picture screen, with the new system, but I also unexpectedly had to buy a new printer, because the new system was not able to function with my antique work-horse printer. The new computer also was not able to use certain key programs that had not been rewritten to the standards of the new [sic?] system. How does one compare and value such systems in the CPI? While some quality adjustment in the case of computers seems appropriate, I argue it has been heavily overdone from the practical standpoint of the average consumer.

Apparently the guy has never heard of eBay, and feels he should never have to replace his rotary phone.

[Anonymous]

The inflation numbers have to be bogus. He claims that inflation has been well above 5%, averaging around 7-8%, or so, since 1988.

This would mean that most prices today would be about five times what they were in ’88.

At that rate, a typical midsize car (Accord/Camry) that cost $15K in ’88 would cost about $75K today.

The componding nature of inflation exposes his bias, as well as some of his reasoning:

Getting more into the hedonics area, I’ll get personal. I use two personal computer systems purchased about 10 years apart for roughly the same price in nominal terms, about $800. While the most recent computer has greater memory and is faster than my old system, both systems generally perform the same tasks for me. Based on the BLS’s adjustments to computer prices, in terms of quality/hedonics, my old system should have been replaceable for about $85.00 in current dollars, which was not doable. I do have a nicer picture screen, with the new system, but I also unexpectedly had to buy a new printer, because the new system was not able to function with my antique work-horse printer. The new computer also was not able to use certain key programs that had not been rewritten to the standards of the new [sic?] system. How does one compare and value such systems in the CPI? While some quality adjustment in the case of computers seems appropriate, I argue it has been heavily overdone from the practical standpoint of the average consumer.

Apparently the guy has never heard of eBay, and feels he should never have to replace his rotary phone.

[Anonymous]

The inflation numbers have to be bogus. He claims that inflation has been well above 5%, averaging around 7-8%, or so, since 1988.

This would mean that most prices today would be about five times what they were in ’88.

At that rate, a typical midsize car (Accord/Camry) that cost $15K in ’88 would cost about $75K today.

The componding nature of inflation exposes his bias, as well as some of his reasoning:

Getting more into the hedonics area, I’ll get personal. I use two personal computer systems purchased about 10 years apart for roughly the same price in nominal terms, about $800. While the most recent computer has greater memory and is faster than my old system, both systems generally perform the same tasks for me. Based on the BLS’s adjustments to computer prices, in terms of quality/hedonics, my old system should have been replaceable for about $85.00 in current dollars, which was not doable. I do have a nicer picture screen, with the new system, but I also unexpectedly had to buy a new printer, because the new system was not able to function with my antique work-horse printer. The new computer also was not able to use certain key programs that had not been rewritten to the standards of the new [sic?] system. How does one compare and value such systems in the CPI? While some quality adjustment in the case of computers seems appropriate, I argue it has been heavily overdone from the practical standpoint of the average consumer.

Apparently the guy has never heard of eBay, and feels he should never have to replace his rotary phone.

[Rich Toscano]

[quote=permabear]Have you read this? http://www.shadowstats.com/article/special-comment%5B/quote%5D

No… does it address the specific issue I raised above?

[Rich Toscano]

[quote=permabear]Have you read this? http://www.shadowstats.com/article/special-comment%5B/quote%5D

No… does it address the specific issue I raised above?

[Rich Toscano]

[quote=permabear]Have you read this? http://www.shadowstats.com/article/special-comment%5B/quote%5D

No… does it address the specific issue I raised above?

[Rich Toscano]

[quote=permabear]Have you read this? http://www.shadowstats.com/article/special-comment%5B/quote%5D

No… does it address the specific issue I raised above?

[Rich Toscano]

[quote=permabear]Have you read this? http://www.shadowstats.com/article/special-comment%5B/quote%5D

No… does it address the specific issue I raised above?

[moneymaker]

If inflation is 6% in China and we import just about everything we buy @ the store from China then what is the “real” rate of inflation. Sure you can use “shrinkage” or lower the quality of a product to keep the price the same, but how long can that mentality be maintained?

[moneymaker]

If inflation is 6% in China and we import just about everything we buy @ the store from China then what is the “real” rate of inflation. Sure you can use “shrinkage” or lower the quality of a product to keep the price the same, but how long can that mentality be maintained?

[moneymaker]

If inflation is 6% in China and we import just about everything we buy @ the store from China then what is the “real” rate of inflation. Sure you can use “shrinkage” or lower the quality of a product to keep the price the same, but how long can that mentality be maintained?

[moneymaker]

If inflation is 6% in China and we import just about everything we buy @ the store from China then what is the “real” rate of inflation. Sure you can use “shrinkage” or lower the quality of a product to keep the price the same, but how long can that mentality be maintained?

[Author]

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