First, the Consumer Price Index doesn’t account perfectly for changes in product quality. For example, an average computer today might cost about the same as an an average computer cost last year, but today’s computer is better than last year’s computer in a number of ways that the CPI doesn’t account for. Similarly, the invention of new goods poses a challenge to the Consumer Price Index, since incorporating such goods into the basket while maintaining comparability over time can get quite tricky.
Second, the Consumer Price Index assumes that a household purchases the same basket of goods regardless of how the prices of those goods changes. In reality, however, households are probably smarter than this, and they likely substitute away from items that get disproportionately expensive to goods that got comparatively less expensive.
The crazy GOP is using a material standard applied to people who require MINIMUM things to survive which EFFECT peoples lives. I knew these people were crazy and that they NEVER think about what someone tells them to PROMOTE.
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