doesn't the cpi make hedonic adjustments, ie reduce the amount of reported inflation for instance on electronic goods because of the increased enjoyment from higher quality over time? how do they factor in the hedonic cost of substitutions? do they?
I'm not quite sure what you mean. Isn't Inflation essentially, Too much money chasing too few goods. There isn't a shortage of goods. I think the effects of Globalization have spurred economic growth. I hear liberals who "Hate" Bush and will make any argument for inflation or recession. They want it both ways. How are the rate cuts ineffective or useless, but, still inflationary? My only argument is that, the Bond Market is a better indication for inflation or recession. The CRB Index, specifically, the rise in Gold prices; is useless.
This is what I think inflation is: In your example, since prices are going up across the board, that would be inflation.
ET and and other internet geek forums such as this are completely uninformed and "out to lunch" with their Idealist philosophy on Global politics and Markets in general. The Ron Paul, Dennis Kucinich clones are all over the internet. I "thought" or "felt" it was inflation when oil reached $60 a barrel. Now, $60 is cheap. Notice how oil at the start of the year reached $50 a barrel in the first quarter, and GDP was less than 1%. Prices rise only has high as the market can bear. Until then it's not inflation.
Last time I checked, you don't need to buy a house, you don't need to buy a car, and you don't need to buy electronics to survive. However, you do need to buy food to live. Healthcare is also convenient for survival. Any rational basket of goods that you can think of that people need to use to live is showing rampant inflation. And by the way, cars and electronics have always depreciated quickly as soon as you buy them.
for every paul head etc, there's a guy like you 100% convinced there's no merit to their grievances and feeling the need to cast generalized insults over the internet. you're the other side of the exact same same coin
Again, not sure what your suggesting. Who buys electronics expecting them to appreicate. When they go bad, you buy a new one, and likely at a cheaper price because of better technology. Also, as I said earlier, I haven't stopped buying food nor is there a shortage at the grocery. I can still afford fueling my car and, I have health coverage. Plenty of Americans don't have health coverage because they choose not to. But, they have it available for them. Could it be more affordable, of course it could; Everything could.
Another quick point about the "healthcare" scare. Of the so called 47 million uninsured Americans. Nearly 10 million aren't even americans!..Secondly, 9 million of the "so called Uninsured" make over 75K per year. These people can afford health coverage. Over 17 Million "Americans" make over the median average of household income but choose not to have coverage. And finally, this says nothing about "Americans" who are eligible for full government health coverage but don't sign up. Once again, the big political lie to introduce "Bigger Government".
Like some of the European countries and Canada, healthcare should be free for everyone; the government should pay for everyone's health insurance premiums.