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


To: BGR who wrote (77868)3/15/2000 8:57:00 AM
From: Freedom Fighter  Read Replies (3) | Respond to of 132070
 
BGR,

>>I don't smoke... but that doesn't mean that I should call for removal of tobacco products from the CPI basket<<

I certainly didn't suggest anything like that.

>>I do not think that taxes are a part of CPI. Given that they are not subject to free market forces<<

They are not. But the basket of services and goods that my taxes buy are part of the overall basket of goods that I consume. As a theoretical point, suppose we moved everything that was going up in price into the government, would there then be no inflation?

I believe government quality issues are also part of the overall picture.

ex. If they raise my property taxes 15%, but the quality of the public schools goes down 10%, that forces me to pay more for less or send my child to private school for $10,000 per year that I didn't spend before. That belongs somewhere.

I think you can at least see the point.

Wayne



To: BGR who wrote (77868)3/15/2000 9:14:00 AM
From: Les H  Read Replies (1) | Respond to of 132070
 
The CPI basket also has the fundamental flaw in that the number of goods and services in the basket keep enlarging. It does a very poor job in identifying that many people who add new products or services to their basket are in fact experiencing an increase in the cost of living.