8/31/2023 0 Comments Cdn substack![]() ![]() ![]() What is the true value of inflation? 2% or 4%? Or is it 3%? Or is it 3.5% because you buy one of the goods twice as often as the other? That's a question of first philosophical origins, and there's no "right" answer. Good X and Good Y both increase in price over some period of time, but one does by 2% and the other by 4%. You have a beef with the Federal Reserve, and possibly with other agencies or laws which refer to the CPI to make policy. This is because it tracks the actual prices of a certain "market basket" of goods with specific products in it, and that basket gets out of date, as people substitute products.īut if someone's "punishing savers" and "perpetuating consumerism", it's not the index, and it's not the people compiling the index, and it's not the people trying to make the index more accurate by adjusting for quality. Many economists, mind you, believe CPI doesn't correct quite enough, and suspect that it overstates the inflation it hopes to measure by around 1%. ![]() If that's "consumerism," well yes, it's a portrait of consumerism. The consumer price index is a series of numbers designed to help people understand what dollar-denominated figures mean to ordinary people going about their lives, spending those dollars. CPI is absurd, it only perpetuates consumerism and punishes savers. ![]()
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