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  • dbaker08723 dbaker08723 Jul 10, 2008 8:52 AM Flag

    CPI Manipulation

    Understand that most economists are in some way connected to the government. Economists in private industry often sit on Washington committees. Most academic economists too are pressured to accept government methods of data analysis without question, or else they risk losing federal grants, government consulting projects, or being appointed to sit on government committees. Washington has many ways to understate inflation. I'll list just a few:

    Use of core inflation at selected times
    Use of non-core inflation at selected times
    Under weighing essential goods and services like food, energy and healthcare
    Overweighing non-essential goods and services or those with highly variable need so as to neutralize the effects of high inflation of basic necessities
    Use of hedonics
    Changing the assumptions and methods of calculations every year to suit its needs

 
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