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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (264128)	5/14/2008 1:43:05 PM
From: Sun Tzu	Read Replies (1) \| Respond to of 281500

The government says steak is now too expensive and we gather that most people would opt out of it to buy hamburger. Fine this is basic economics. Then the government says, since fewer steaks are sold, then steak should mean less in calculating the inflation and the new number for inflation is "x". WRONG because the whole point is to have had a fixed frame of reference so you can tell how expensive the same basket of goods have become. The way the government plays with the economic numbers, if some day the standard of living in the US fell to the level of India's, then government number cruncher would claim we are going through deflation, because the former American standard of living is now priced out of people's reach!!