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-   -   Fortunes Tinfoil CPI (https://www.early-retirement.org/forums/f28/fortunes-tinfoil-cpi-34547.html)

RockOn 04-03-2008 07:22 PM

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 :p

The Consumer Price Index may underestimate inflation. - Apr. 3, 2008

twaddle 04-03-2008 07:25 PM

7% inflation would mean that your cost of living has doubled since 1998. Mine hasn't. Has yours?

RockOn 04-03-2008 07:25 PM

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.

packrat44 04-03-2008 07:31 PM

Quote:

Originally Posted by RockOn (Post 637902)
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.

twaddle 04-03-2008 07:31 PM

So what timeframe are we talking about? I've experienced over 100% inflation some days, and close to 100% deflation others. :)

Patrick 04-03-2008 07:32 PM

Quote:

Originally Posted by RockOn (Post 637902)
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 :p

The Consumer Price Index may underestimate inflation. - Apr. 3, 2008

The govmint has been lying about the CPI for years. :rant: 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.

Notmuchlonger 04-03-2008 07:35 PM

"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

twaddle 04-03-2008 07:37 PM

91% sounds inflated to me. Are you sure that isn't hedonically adjusted?

RockOn 04-03-2008 07:54 PM

Quote:

Originally Posted by twaddle (Post 637909)
So what timeframe are we talking about? I've experienced over 100% inflation some days, and close to 100% deflation others. :)

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. :)

Notmuchlonger 04-03-2008 07:55 PM

Quote:

Originally Posted by RockOn (Post 637925)
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. :)

Guess? Not actual numbers you have kept track of? Tsk tsk..

twaddle 04-03-2008 07:58 PM

Quote:

Originally Posted by RockOn (Post 637925)
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. :)

Yikes, it turns out that you're right. At least for your lifestyle.

https://www.early-retirement.org/atta...7fd91eda1e.jpg

:)

RockOn 04-03-2008 07:59 PM

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.:)

Notmuchlonger 04-03-2008 08:02 PM

Quote:

Originally Posted by RockOn (Post 637931)
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.:)

Oh well since you put it that way.


Baaahhh..

Im in..

RockOn 04-03-2008 08:05 PM

Quote:

Originally Posted by twaddle (Post 637928)
Yikes, it turns out that you're right. At least for your lifestyle.

https://www.early-retirement.org/atta...7fd91eda1e.jpg

:)

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!

twaddle 04-03-2008 08:10 PM

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?

https://www.ttiinc.com/docs/IO/7743/tin.jpg

Notmuchlonger 04-03-2008 08:10 PM

So what should we do about this Rockon? What is the course of action we shall take in this crusade?

RockOn 04-03-2008 08:13 PM

Quote:

Originally Posted by twaddle (Post 637938)
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?

RockOn 04-03-2008 08:16 PM

Quote:

Originally Posted by Notmuchlonger (Post 637939)
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.

Notmuchlonger 04-03-2008 08:18 PM

Quote:

Originally Posted by RockOn (Post 637941)
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!


YouTube - John Lennon - Power To The People

twaddle 04-03-2008 08:19 PM

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. :)


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