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Political Factoid
Inflation reporting is greatly understated.*
- No longer is a fixed basket of goods used.
- It is assumed that when prices go up,
people will buy smaller quantities
(because their budget is fixed.)
- It is assumed that when prices go up,
people will buy cheaper, lesser-quality
substitutes.
(e.g., pigs feet instead of steak,
used clothes instead of new, yesterday's newspaper, ....)
- A geometric basis is now used instead of an
arithmetic basis
(as it helps hide the inflation).
| * |
This covers up a lot of corruption in the economy.
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cf.
1237,
1500,
1503
|
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-30-
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