Re: CPI Composition
[ QUOTE ]
personally, i doubt highly that if CPI is understated, it is done so on purpose.
[/ QUOTE ]
well part of cpi assumes that people will lower their standard of living when facing rising prices, eg, if the price of beef goes up, according to cpi, people will switch to chicken.
so it seems to me that if you are on a fixed income tied to cpi, then you are assured a lower and lower standard of living, assuming generally rising prices (which they've been for the last what, 70 years at least).
do you agree with that?
|