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

To: Les H who wrote (69427)	10/22/1999 8:06:00 PM
From: Les H	Read Replies (1) \| Respond to of 132070

Commentary: Are Government Statistics Funny Ha-Ha or Funny Strange ? As any economist will tell you, statistics can be funny things. But commentator Irving R. Levine, dean of international studies at Lynn University, and former chief economics correspondent for NBC news says, funny doesn't always mean that you should laugh at them. 09/28/99: IRVING R. LEVINE, COMMENTARY: It is been said that a person who can smile when things go wrong has thought of someone or something he can blame it on. It's well to remember this bit of wisdom when experts start placing blame on the Consumer Price Index for things they think are wrong with the economy. The people at the Bureau of Labor Statistics who compile the CPI and other monthly reports are nonpolitical professionals who call the shots as they see them. So when critics question the accuracy of the CPI, they probably have an ax to grind. You may remember a few years ago officials were searching for ways to trim the snow balling Federal budget deficit. They argued that the CPI gave an erroneously high reading which drove up Federal payments for Social Security and other pensions which are tied to the CPI. Now a new complaint is being heard in economic circles, namely, that the Consumer Price Index gives an erroneously low reading. These critics say that inflation is a lot worse than the CPI Indicates. Why do they say this? Well, because they feel that the economy is growing too fast and they are looking for a reason for the Fed to raise interest rates even though inflation is dormant. In short, there may or may not be a reason for raising interest rates but the reason is not the CPI. I'm Irvine R. Levine. nbr.com