For starters, they game the fuck out of it. Steak used to be a part of the “bundle of goods” - until steak became too expensive. Then it magically floated out of the bundle because otherwise the inflation would have been too high. So the moment a product has too much negative impact on the CPI, it just goes away, “fixing” the CPI.
Secondly, the CPI includes durable and luxury goods. Big screen televisions are in “the bundle”. What happens when food and energy prices are through the roof? People stop buying TVs. What happens when people stop buying durable goods like TVs? Their prices go down. So cheaper televisions drive the index down, except no one cares because they can’t afford food or heat.
Everyone with a clue knows that food, shelter, and energy prices are out of control. Everyone with a clue knows that modern monetary policy and green energy policy are to blame. The game is in convincing the masses that something or someone else is responsible for the pain they’re feeling at the checkout.
The CPI is bullshit.
For starters, they game the fuck out of it. Steak used to be a part of the “bundle of goods” - until steak became too expensive. Then it magically floated out of the bundle because otherwise the inflation would have been too high. So the moment a product has too much negative impact on the CPI, it just goes away, “fixing” the CPI.
Secondly, the CPI includes durable and luxury goods. Big screen televisions are in “the bundle”. What happens when food and energy prices are through the roof? People stop buying TVs. What happens when people stop buying durable goods like TVs? Their prices go down. So cheaper televisions drive the index down, except no one cares because they can’t afford food or heat.
Everyone with a clue knows that food, shelter, and energy prices are out of control. Everyone with a clue knows that modern monetary policy and green energy policy are to blame. The game is in convincing the masses that something or someone else is responsible for the pain they’re feeling at the checkout.