Comments on: 2008 CPI and Inflation and Analysis http://www.mcdonaldland.info/2009/01/19/2008-cpi-and-inflation-and-analysis/ A magical discussion of software, economics, and other assorted theories. Mon, 07 Jun 2010 20:13:12 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Jason McDonald http://www.mcdonaldland.info/2009/01/19/2008-cpi-and-inflation-and-analysis/comment-page-1/#comment-8018 Jason McDonald Sat, 14 Feb 2009 03:47:45 +0000 http://www.mcdonaldland.info/2009/01/19/2008-cpi-and-inflation-and-analysis/#comment-8018 Perhaps I am missing it but I don't see how my example is too far off - the one in the first link you gave compares the substitution of ice cream for frozen yogurt while mine compares the substitution of one type of bread for another. The numbers, of course, are totally fictional and arbitrary in order to illustrate the point. HOWEVER, after reading your first link I traced through the links and found a common name, John Williams. When quoting him I had no idea that he was involved with shadowstats, a site that has a government conspiracy kind of feel to it. The quote I found was referenced from Newsweek, which I mistakenly lent credence to. I don't understand how substituting housing prices for rental prices could cause an increase in CPI, especially with the housing bubble. I have not read your second link yet (but have bookmarked it to do so), so perhaps this explains it. Thanks for your comments. Perhaps I am missing it but I don’t see how my example is too far off – the one in the first link you gave compares the substitution of ice cream for frozen yogurt while mine compares the substitution of one type of bread for another. The numbers, of course, are totally fictional and arbitrary in order to illustrate the point.

HOWEVER, after reading your first link I traced through the links and found a common name, John Williams. When quoting him I had no idea that he was involved with shadowstats, a site that has a government conspiracy kind of feel to it. The quote I found was referenced from Newsweek, which I mistakenly lent credence to.

I don’t understand how substituting housing prices for rental prices could cause an increase in CPI, especially with the housing bubble. I have not read your second link yet (but have bookmarked it to do so), so perhaps this explains it.

Thanks for your comments.

]]> By: anon http://www.mcdonaldland.info/2009/01/19/2008-cpi-and-inflation-and-analysis/comment-page-1/#comment-7922 anon Fri, 13 Feb 2009 15:35:43 +0000 http://www.mcdonaldland.info/2009/01/19/2008-cpi-and-inflation-and-analysis/#comment-7922 Other than gasoline, it seems like most prices are still rising. I don't think this is a good description of the substitution idea. Also, moving away from the price of a house raised the CPI, it didn't lower it. A more accuration description can be found here: http://www.econbrowser.com/archives/2008/09/shadowstats_deb.html and here: http://www.bls.gov/opub/mlr/2008/08/art1full.pdf Other than gasoline, it seems like most prices are still rising.

I don’t think this is a good description of the substitution idea. Also, moving away from the price of a house raised the CPI, it didn’t lower it.

A more accuration description can be found here:
http://www.econbrowser.com/archives/2008/09/shadowstats_deb.html
and here:
http://www.bls.gov/opub/mlr/2008/08/art1full.pdf

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