Consumer prices keep posting declines.

Discussion in 'Economics' started by noob_trad3r, Jun 17, 2010.

  1. We just need to let housing, education, and healthcare prices fall so that Americans can afford them again without going up to their eyeballs in debt.

    Oh wait, we cant do that! How could we repair our economy without inflated asset prices?

    Where would "growth" come from if the government was not pumping funny money into education and healthcare? Lets get the consumer spending again, bent over the debt barrel even worse, because that is the only thing that keeps our fake-work economy going.
  2. The article cites lower energy cost (gasoline). What do you think would happen if gasoline prices drop? People would move around and do things, in particular - spend money in other sectors besides energy.

    If all the taxes were suspended from oil, what do you suppose would happen to the economy? What would be different regarding the tax loss to the Fed? Ya think they'll print more money?
  3. I love the way our "Government" does things. Excluding Food and Energy, the two things you have to have.
  4. how is it that college is getting more expensive while wages drop? Prices should meet demand right?

    So how does demand keep growing for something that gets more expensive and provides less returns. does not seem to compute with free market economy theories.
  5. The "government" doesn't do anything. There are two numbers, CPI/PPI and core CPI/PPI. Core excludes food and energy, the other doesn't. Both numbers are published.
  6. heypa


    Kass. Which number does the gumment use in its' cost of living adjustments?Get real and think before spouting.
  7. The BLS actually publishes four different CPI values: CPI-U (the one the mkts look at), CPI-W, C-CPI-U (chained version of CPI-U) and the experimental CPI-E for the elderly. CPI-W is the number used for the COLA.
  8. I don't know what your government uses, but in Canada it is typically 2%.

    In any case it doesn't matter. Volatile food and energy prices means that CPI can be more or less than core CPI at any time. It makes no difference.

    Get real and think before spouting.
    #10     Jun 17, 2010