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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (62911)	6/21/1999 7:21:00 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 132070

BGR, >>Rent is a cost home prices are assets.<< If you already own a home it is an asset. If you are a renter choosing to become an owner, it is a cost. At least that's the way I see it. This is similar to a person that leases a car deciding to buy one instead. I think both should be used even though there should actually be a close relationship between the two. They used home values years ago. When they changed it to rents it had the effect of lowering the CPI (at least according to something I read a while back.) There are other issues with using rents that are having the effect of lowering the CPI number, but I can't recall the details. Stephen Roach of Morgan Stanley (I believe) wrote a big piece on it. >>Also, societal changes that alter needs (like alarms) are beyond the scope of CPI, which only attempts to quantify the cost of living after taking into account societal changes.<< I understand your point and pretty much agree. My only point was that I am paying taxes for services like crime prevention. If it is not as good as it was, or other services are lacking that were once in place, it is costing me more for less. To me there are quality issues on the downside. ex. If public education sucks in some areas and crime rises etc... >>As for public facilities, where I live such has improved majorly in the last 10 year<< Please tell me where you live. (g) I would have to question whether you are receiving a dollar of value for every dollar of tax paid. Anyone can deliver more or better for a "lot more" money. Though I would admit that even in NYC things are better than they were 10 years ago in many ways. That could be cyclical though. When the mythical "BK" comes then the financial center of the world may be in deep doo doo from a quality point of view. (g) Wayne