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134 sats \ 1 reply \ @freetx 15 Mar \ parent \ on: America's middle class is collapsing (because they get richer not poorer) charts_and_numbers
It's tough to say, because much of what we use in daily life didn't even exist in 1967. VCR's cost thousands of dollars when they first came out. Can you imagine what internet enabled smart phones would have cost?
Well that is already in the govt figures.
The govt uses "hedonic adjustments" to negatively adjust CPI to account for new developments that didn't exist in the past.
Secondly they use "baskets of goods", so instead of tracking a specific item (like Tbone steaks), they track a "meat basket" and the elements of that meat basket is adjusted over time. (ie. 50% Ground meat, 25% steaks, 25% brisket, etc)
I think both of these things: Hedonic adjustments + variable baskets are really just accounting tricks to keep reported inflation artificially low.
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10 sats \ 0 replies \ @Undisciplined 15 Mar
Well that is already in the govt figures.
Hedonic adjustments account for quality improvements in products that already existed, not previously non-existent products.
The introduction new products is a known issue for inflation adjustments.
Whether it's "just" an accounting trick or not depends on who you're talking about. There are plenty of economists who argue for those methods in good faith. It's also not a coincidence that whenever they tweak the methodology it makes the status quo look better.
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