|
|
04-03-2008, 07:22 PM
|
#1
|
Full time employment: Posting here.
Join Date: Jan 2008
Posts: 798
|
Fortunes Tinfoil CPI
Boskin also says that whatever you're paying in price increases is offset by the additional pleasure you get from better goods. To put it another way, you adjust for improvement in quality over time - a practice called hedonic pricing. So, for example, energy price increases due to federally mandated environmental measures are offset by how much we all sit around enjoying the cleaner environment. (And there's a lot of sitting, because it's not like we can afford to go anywhere anymore.) But, as critics note, quality increases over time are also a reflection of the fact that increased production typically means lower prices, thanks to economies of scale. This may be a matter of splitting methodological hairs, but if it isn't, aggressive estimates put the non-Boskinized actual inflation rate north of 7%. (The We're All Gonna Die estimate is more like 10%, but let's not push it.)
7% sounds about right, about 91% agree with me
The Consumer Price Index may underestimate inflation. - Apr. 3, 2008
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
04-03-2008, 07:25 PM
|
#2
|
Thinks s/he gets paid by the post
Join Date: Jun 2006
Posts: 1,703
|
7% inflation would mean that your cost of living has doubled since 1998. Mine hasn't. Has yours?
__________________
Emancipated from wage-slavery since 2002
|
|
|
04-03-2008, 07:25 PM
|
#3
|
Full time employment: Posting here.
Join Date: Jan 2008
Posts: 798
|
Yes probably, but you are not correct, I am not saying 7% for 10 years, only 7% right now and for awhile now. That is not fair.
|
|
|
04-03-2008, 07:31 PM
|
#4
|
Thinks s/he gets paid by the post
Join Date: Jun 2007
Location: near Canadian border and near Mexican border
Posts: 1,142
|
Quote:
Originally Posted by RockOn
Boskin also says that whatever you're paying in price increases is offset by the additional pleasure you get from better goods.
|
Give me some of whatever Boskin has been drinking.
__________________
Pigs get fat, hogs get slaughtered. That's my story and I am sticking to it.
|
|
|
04-03-2008, 07:31 PM
|
#5
|
Thinks s/he gets paid by the post
Join Date: Jun 2006
Posts: 1,703
|
So what timeframe are we talking about? I've experienced over 100% inflation some days, and close to 100% deflation others.
__________________
Emancipated from wage-slavery since 2002
|
|
|
04-03-2008, 07:32 PM
|
#6
|
Full time employment: Posting here.
Join Date: Mar 2005
Location: Northern, Florida
Posts: 925
|
Quote:
Originally Posted by RockOn
Boskin also says that whatever you're paying in price increases is offset by the additional pleasure you get from better goods. To put it another way, you adjust for improvement in quality over time - a practice called hedonic pricing. So, for example, energy price increases due to federally mandated environmental measures are offset by how much we all sit around enjoying the cleaner environment. (And there's a lot of sitting, because it's not like we can afford to go anywhere anymore.) But, as critics note, quality increases over time are also a reflection of the fact that increased production typically means lower prices, thanks to economies of scale. This may be a matter of splitting methodological hairs, but if it isn't, aggressive estimates put the non-Boskinized actual inflation rate north of 7%. (The We're All Gonna Die estimate is more like 10%, but let's not push it.)
7% sounds about right, about 91% agree with me
The Consumer Price Index may underestimate inflation. - Apr. 3, 2008
|
The govmint has been lying about the CPI for years. This is one more way they do it. Core CPI excludes fuel and food, yet it's the most quoted number. Why? Because fuel and food have gone up the most. I'm in the 91%. Additional pleasure from lower quality goods imported from China? I think not.
__________________
Retired in 2006 at age 49.
"Who among us is smart enough to learn from the mistakes of others?" - Voltaire
|
|
|
04-03-2008, 07:35 PM
|
#7
|
Thinks s/he gets paid by the post
Join Date: Dec 2007
Posts: 4,764
|
"7% sounds about right, about 91% agree with me"
Well then. Thats settled. 91% agree with you. What more could you want? Im just a ignorant folk I dont keeps no track of my own spenses heh heeee
|
|
|
04-03-2008, 07:37 PM
|
#8
|
Thinks s/he gets paid by the post
Join Date: Jun 2006
Posts: 1,703
|
91% sounds inflated to me. Are you sure that isn't hedonically adjusted?
__________________
Emancipated from wage-slavery since 2002
|
|
|
04-03-2008, 07:54 PM
|
#9
|
Full time employment: Posting here.
Join Date: Jan 2008
Posts: 798
|
I would say to just add about 3% to what has been reported yearly since around 1996. That would be fair enough for me and is my best Tinfoiled guess.
|
|
|
04-03-2008, 07:55 PM
|
#10
|
Thinks s/he gets paid by the post
Join Date: Dec 2007
Posts: 4,764
|
Guess? Not actual numbers you have kept track of? Tsk tsk..
|
|
|
04-03-2008, 07:58 PM
|
#11
|
Thinks s/he gets paid by the post
Join Date: Jun 2006
Posts: 1,703
|
Yikes, it turns out that you're right. At least for your lifestyle.
__________________
Emancipated from wage-slavery since 2002
|
|
|
04-03-2008, 07:59 PM
|
#12
|
Full time employment: Posting here.
Join Date: Jan 2008
Posts: 798
|
I'll settle for a guess, it's close enough. This subject sure does get the blood flowing. Why can't we all just agree with the hedonically adjusted 91% of the population and admit we are getting hosed? It's obvious to the 91% of us with the reflective hats.
|
|
|
04-03-2008, 08:02 PM
|
#13
|
Thinks s/he gets paid by the post
Join Date: Dec 2007
Posts: 4,764
|
Oh well since you put it that way.
Baaahhh..
Im in..
|
|
|
04-03-2008, 08:05 PM
|
#14
|
Full time employment: Posting here.
Join Date: Jan 2008
Posts: 798
|
Quote:
It's really amazing that at the recent 1.50 high price on your chart, it was actually running at a 7% annual rate of increase. You proved my point, thanks!
|
|
|
04-03-2008, 08:10 PM
|
#15
|
Thinks s/he gets paid by the post
Join Date: Jun 2006
Posts: 1,703
|
Yes, but note that I substituted aluminum for tin. Still, if you dress in shiny metals, I can see where you're coming from.
Oh, here's tin. 200% increase in 5 years! Have you considered straw hats instead?
__________________
Emancipated from wage-slavery since 2002
|
|
|
04-03-2008, 08:10 PM
|
#16
|
Thinks s/he gets paid by the post
Join Date: Dec 2007
Posts: 4,764
|
So what should we do about this Rockon? What is the course of action we shall take in this crusade?
|
|
|
04-03-2008, 08:13 PM
|
#17
|
Full time employment: Posting here.
Join Date: Jan 2008
Posts: 798
|
Quote:
Originally Posted by twaddle
Yes, but note that I substituted aluminum for tin. Still, if you dress in shiny metals, I can see where you're coming from.
Oh, here's tin. 400% increase in 5 years! Have you considered straw hats instead?
|
You just keep making my point. Looks like the CPI believers are really the conspirators and should be looking for the new hats. Apologies anyone?
|
|
|
04-03-2008, 08:16 PM
|
#18
|
Full time employment: Posting here.
Join Date: Jan 2008
Posts: 798
|
Quote:
Originally Posted by Notmuchlonger
So what should we do about this Rockon? What is the course of action we shall take in this crusade?
|
Join the bandwagon to pressure the government to start telling the truth. When we get the number to 99% they will listen.
|
|
|
04-03-2008, 08:18 PM
|
#19
|
Thinks s/he gets paid by the post
Join Date: Dec 2007
Posts: 4,764
|
Quote:
Originally Posted by RockOn
Join the bandwagon to pressure the government to start telling the truth. When we get the number to 99% they will listen.
|
Right on power to the people!
|
|
|
04-03-2008, 08:19 PM
|
#20
|
Thinks s/he gets paid by the post
Join Date: Jun 2006
Posts: 1,703
|
I'm sorry. The truth is that I cannot afford a tinfoil hat. I have been using imported Chinese aluminum foil hats, and you're right -- the substitution just doesn't cut it.
Wear your tinfoil proudly. Or sell it to me. $5? And I like your shoes too.
__________________
Emancipated from wage-slavery since 2002
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|