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To: dpl who wrote (88094)	3/30/2001 2:25:52 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 436258

well, that's a bit too simplistic imo. it completely ignores that the money supply has grown MUCH faster than the real economy since the Fed was founded in 1913. they're simply printing too much.

To: dpl who wrote (88094)	3/30/2001 4:18:13 PM
From: LLCF	Read Replies (1) \| Respond to of 436258

<He explains it with an example.A steak dinner now costs more than a steak dinner 100 years ago because you pay for more now than then.Now you pay for things like the employees income tax,SS tax,corp tax,regulations on the resteraun,all these taxes on the people that supply your company, etc. > Call Greenjeans... looks like you have some nice ideas to help him out with his hedonic pricing. dAK

To: dpl who wrote (88094)	3/30/2001 4:32:26 PM
From: Les H	Read Replies (1) \| Respond to of 436258

If you exclude taxes and fringe benefits, then you need to subtrace the hedonic benefits of those costs from earlier wages. For instance, you'll have to weigh the 13% FICA withholding and negative personal savings rate of today versus the 15-20% savings rates of decades long ago. You'd also have to incorporate the types of government services, such as education, child care, and parental care that extended families used to provide in the past. Going down that road of excluding those costs now is just cooking the books. One need only look at how they're indexing the FICA wage ceilings to see that the CPI is being managed to control outlays and income to the gov.