Re: CPI Composition
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I just heard paul craig roberts, economist under reagan, father of "reaganomics", and he said the cpi underestimates true inflation, so you know, it's not just a bunch of "kooks" or whatever.
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i just finished reading studies that accused the CPI of overstating inflation.
the debate rages on for both sides of the issue (though i'd be more likely to think that understating is an issue vs. overstating)
either way, you can look at it and judge for yourself.
my overall point before hand though is that you can trust the market of academics to bemore informed than legislators and i thought it odd for borodog to quote a legislator rather than respected economists/journals etc.
just my thoughts.
personally, i doubt highly that if CPI is understated, it is done so on purpose.
Barron
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