/biz/ - Business & Finance

[Anonymous No.56649340]

the CPI basket of goods is continually re-balanced and prices are adjusted hedonically. if look at the basket of goods today and compare it to the basket of goods from 10 years ago, the component makeup is completely different. it's not a 1:1 comparison over time. where is the utility in this CPI index? why does ANYONE put stock into this scam?

[Anonymous No.56649345]

Anon most people don't even know that dollar/euro are not backed by gold anymore
you're vastly overestimating the level of fucks that most anyone gives

[Anonymous No.56649355]

>>56649340
>>56649345
and most people think banks are places that store their money

[Anonymous No.56649380]

They have to adjust it and in my opinion they don’t adjust it enough. The basket of goods on the 80s had a Walkman in it, no one is buying a Walkman today so it’s good that they change the basket to match consumer preferences and changes. There is a problem called the substitution problem with the basket of goods, the fact that the FED doesn’t account for brand preferences changes. Your average basket of goods changes literally each month. CPI deserves to be hated but not for this.

[Anonymous No.56649390]

>>56649380
i couldn't care less about consoomer trinkets. they adjust food, vehicles, clothing, healthcare, utilities/energy, etc.

[Anonymous No.56649405]

>>56649380
>>56649390
e.g. the cost of a base model economy car has gone up drastically over time, yet these jewish masterminds will adjust prices downward because of technological improvements. today's base model has a 6 speed transmission, the base model from 10 years ago had a 5 speed transmission, etc.

but it's not a 1:1 comparison over time. the consumer doesn't have a choice -- it's the BASE MODEL car. how does adjusting for FORCED technological improvement benefit anyone, how is it relevant to anyone? isn't it more relevant to illustrate that the point of entry for a base model economy car has increased?

[Anonymous No.56649417]

>>56649380
the problems are far greater than your keynesian econ 101 professor explained....

1. have "meat basket" that is 60% ribeye steak, 40% ground meat....inflation running hot....need to fix numbers, rebalance meat basket to 20% steak 80% ground meat....oh no no no inflation still too hot....add dog-food into meat basket to keep cpi low
2. hedonic adjustments. its not just removing old walkmans....they add a "CREDIT" to cpi for the PLEASURE you are receiving....so the fact that PC Computer prices fell for 20 years results in a negative hedonic adjustment to CPI thereby reducing cpi

[Anonymous No.56649477]

>>56649405
It's called a utility adjustment, it argues that newer goods are better than older ones just because your base model car has a CVT and an iPad in the dash, nevermind it'll never be as reliable as the car made ten years ago.

[Anonymous No.56649484]

>>56649417
where should i look for if i want to look for proof of this kind of fuckery?

seems way too dishonest to be real

[Anonymous No.56649498]

>>56649417
I’m not Keynesian so don’t get all mad at me like that. I also think you have a fundamental misunderstanding of what a consumer price index is. The price of ribeyes doesn’t matter anymore if no one buys them, even if it went up 1000%. What matters is what the average consumer buys, and if everyone starts buying cheaper dog food instead of ribeyes then there was a decrease in the cost/price of food to consumers, which is what the consumer price index measures- the cost of energy, food, housing, and whatever other bullshit to the average person. I would argue that your grievances are founded in the belief that the CPI measures something else that what you think it should measure. All I would tell you is that there are other ways to figure out what concerns you, the fact that even though people spend less money on food it’s lower quality.

[Anonymous No.56649505]

>>56649345
It’s crazy how unaware most people are of the shit being done to them.

[Anonymous No.56649517]

>>56649484
basket makeup is called "relative importance". this is easily accessed, they tabulate it.

hedonic/pricing adjustments are called "quality adjustments." there are methodology papers but it's not easily tabulated or compared over time. see https://www.bls.gov/cpi/quality-adjustment/new-vehicles.pdf for an example and https://www.bls.gov/cpi/quality-adjustment/home.htm for a list of goods subject to quality adjustment.

[Anonymous No.56649523]

>>56649498
>What matters is what the average consumer buys....

you're missing the broader picture. what is the utility of a period over period metric (inflation) when there is no basis of comparability between the two periods?

[Anonymous No.56649533]

I didn't realize that all measures are shit because you can't even buy the same products anymore

[Anonymous No.56649536]

>>56649345
This
I was 16 buying acid on silkroad when I discovered bitcoin and I begged by dad to buy but he literally told me I’m retarded because the dollar was backed by gold

[Anonymous No.56649596]

>>56649498
>the cost of energy
false. there is no 'energy' category of CPI
>I also think you have a fundamental misunderstanding of what a consumer price index is.
Fixed Basket tracking is what CPI always was....then in 1980 (hint: remember the severe inflation of the 70s), they changed how CPI was calculated to your more jew-friendly model - specifically this was done to downplay the inflation.
>price of ribeyes doesn’t matter anymore if no one buys them,
So if people can't afford ribeyes because inflation has pushed prices to $50 per steak and subsitute to dogfood....what you're saying is that fact should NOT be reflected in CPI?
>no no no no CPI is just measuring what ppl actually buy.....
Thats called GDP and we already have that. CPI is the metric all institutions use for inflation adjustment.

[Anonymous No.56649654]

>>56649596

[Anonymous No.56649670]

>>56649340
Were you born yesterday you stupid fucking faggot? get the fuck off this board moronic nigger cunt you're not welcome shitting up the place with your empty skulled retardation. kys.

[Anonymous No.56649681]

>>56649670
i'm sorry that you were repeatedly molested as a child, but these childish emotional outbursts, a symptom of impotent rage, are NOT the answer. take your meds. attend your therapy sessions. that is the path forward.

[Anonymous No.56649696]

>>56649681
when you post shit like this it literally pains me how fucking retarded you are yet you think you're a fucking genius. go the fuck away you absolute waste

[Anonymous No.56649720]

>>56649654
yes, it is "measured" just not used....

[Anonymous No.56649734]

>>56649696
what do you do for a living and how much do you make a year?