SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Booms, Busts, and Recoveries

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: LLCF who wrote (5003)6/15/2001 11:43:32 PM
From: Ilaine  Read Replies (2) of 74559
 
The government "adjuster" is to keep from comparing apples and oranges. I don't see how it adds anything to analysis of GDP - yes, a PIII is faster than a 286, but we're looking at such gross numbers, how can there be any meaningful adjustment?

It makes much more sense when you are trying to look at CPI, which has always been a "market basket" approach. If in year 1980 the market basket includes a microwave oven - to use a less emotionally laden example than computers - which costs $500, how do you compare a microwave oven bought in 2000? The new one will probably be much bigger, more powerful, with additional features like a rotating plate on the floor, and will still be cheaper, maybe $200. But to be meaningful, you'd have to somehow compare a 2000 microwave that is just as small, just as weak, and just as featureless as the 1980 model, just to get at the most basic price differential.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext