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In reply to the discussion: A two-income family today is poorer than a one-income family was in the 1970s [View all]Romulox
(25,960 posts)63. Well, for example, they're not arguing we *can afford* new cars as readily. They've decided instead
that we don't want to be able to afford new cars, since used cars are so good!
Nevermind the fact that any rational consumer would rather have a new car than used, all other things held constant.
In this way, government economists have contradicted the clear signals of the market with their own judgment, and all in order to "prove" that shrinking wages aren't so bad. Also, they have changed their mind as to how pollution controls should affect one's perception of inflation, and have therefore made further changes...
Hard to see any level of precision here. It's more politic than "science", that's for certain!
4. Transportation. The annual average difference between the CPI-U and CPI-U-RS transportation components between 1978 and 1998 was near zero, reflecting several changes that roughly offset each other. Specifically, while downward adjustments were made to the CPI-U-RS to incorporate the effects of changes in the quality of used cars and the effects of the geometric-mean formula, net upward adjustments resulted from the deletion from the CPI-U-RS of the index for automobile finance charges and from an upward adjustment based on the backing out of a prior adjustment for changes in quality for mandated pollution controls made to the CPI-U over the period. While annual changes in the CPI-U and CPI-U-RS transportation measures were usually within one-half percent of each other, the CPI-U-RS transportation measure was a full percentage point higher than that of the CPI-U in 1980, a year in which the CPI-U-RS reflected a large upward adjustment to remove the aforesaid previous downward adjustment in the measurement of pollution-related changes in the quality of 1981-model automobiles.
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A two-income family today is poorer than a one-income family was in the 1970s [View all]
kpete
Jun 2012
OP
I just wonder what's still keeping the cups and saucers spinning in the air
aint_no_life_nowhere
Jun 2012
#6
That's a lot of it and a great example of lying with figures and statistics.
Egalitarian Thug
Jun 2012
#42
And workers could be making that kind of money before they graduated high school in 1973
NNN0LHI
Jun 2012
#7
and back then employers expected to train on the job and pay you while you learned
SoCalDem
Jun 2012
#106
I would think that median income when figured using the kind of wages the billionaires get would
jwirr
Jun 2012
#17
The real story here is not the median but the mode. The divide had expanded so far that those above
Egalitarian Thug
Jun 2012
#43
I'd be glad to help with the barbecue ... even though I'd avoid them in my diet.
TahitiNut
Jun 2012
#110
We need to tax more than income, income tax is a canard to distract us from
Egalitarian Thug
Jun 2012
#44
I don't know what it will take to wake up tea party types to these facts.
senseandsensibility
Jun 2012
#14
Many jobs could be accessed via public transportation, too. You know, that thing
valerief
Jun 2012
#21
So many "out of pocket" expenses raising children now, far more than before also
newthinking
Jun 2012
#67
Um, mathematic? Are those figures adjusted for purchasing power (you know, the cost of living?)
Romulox
Jun 2012
#25
If it is not adjusted then the census folks are pretty useless at giving us good information.
dkf
Jun 2012
#26
I don't think yours is a safe assumption. Moreover, guessing shouldn't be required. nt
Romulox
Jun 2012
#27
Let me understand the thesis implicit here: despite huge decreases in household wages,
Romulox
Jun 2012
#62
Poster won't be able to do that because the methodology for calculating inflation is not constant
NNN0LHI
Jun 2012
#35
In what way do you find the CPI-U-RS to be insufficent as a "purchasing power index"?
mathematic
Jun 2012
#59
Well, for example, they're not arguing we *can afford* new cars as readily. They've decided instead
Romulox
Jun 2012
#63
Most who are old enough to have worked 30 years ago know that the government figures do not reflect
newthinking
Jun 2012
#66
"All other things held constant" means ALL other things held constant. It's literal language.
Romulox
Jun 2012
#80
"All things held constant" means the PRICE IS THE SAME. It's the *literal* meaning of the phrase.
Romulox
Jun 2012
#87
And you somehow try to use this as justification that CPI should not adjust for quality
mathematic
Jun 2012
#99
I notice you skipped the parent's basement example, btw. It's an indictment of your methods, imo. nt
Romulox
Jun 2012
#81
Similarly, the *quality* of parent's basements is surely rising, what with broadband and all...
Romulox
Jun 2012
#64
Just *AMAZING* that anyone dare pose a question that you aren't able to answer. How rude! nt
Romulox
Jun 2012
#94
Just to be clear: not being an "economist", I notice various factors are typically excluded from
Romulox
Jun 2012
#31
Agreed. It's based on the author's assessment of what consumers *should* want, not what they do--
Romulox
Jun 2012
#65
I find it pragmatically useful to regard the CPI as a "Keep Up With The Joneses" Index.
TahitiNut
Jun 2012
#69
Hard to contextualize "keeping up" when workers are demonstrably *falling behind* though... nt
Romulox
Jun 2012
#89
Do your calculations account for the increase in hours worked sans compensation?
TalkingDog
Jun 2012
#49
This poster speaks with such confidence, but following the subthreads, it's all backpedaling. nt
Romulox
Jun 2012
#88
It's actually much worse: he's arguing that "QUALITY" of life today is higher, so it doesn't matter
Romulox
Jun 2012
#112
Deregulation of the trucking indurstry cost the teamster union 300,000 good paying jobs.
demosincebirth
Jun 2012
#39