The Chapwood Index - The Real Cost of Living Index
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MachineGhost
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The Chapwood Index - The Real Cost of Living Index
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
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mathjak107
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Re: The Chapwood Index - The Real Cost of Living Index
an interesting look at the chapwood index and the issues with it
http://tsi-blog.com/2015/07/beware-of-b ... n-indices/
http://tsi-blog.com/2015/07/beware-of-b ... n-indices/
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MachineGhost
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Re: The Chapwood Index - The Real Cost of Living Index
Not convincing. All Chapwood Index is is 1980 inflation indexing applied to a more realistic set of goods and services compared to the CPI with its endless adjustments and revisions on tens of thousands of items since 1980 (it also omits rents I think).
The question left unasked is... if it was okay to use 1980 inflation indexing for decades before, why is it not okay to use now? No one eats hamburger in place of steak if they want a steak.
My rent went up 3%. CPI isn't even remotely close to that (if it does include rent).
The question left unasked is... if it was okay to use 1980 inflation indexing for decades before, why is it not okay to use now? No one eats hamburger in place of steak if they want a steak.
My rent went up 3%. CPI isn't even remotely close to that (if it does include rent).
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
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mathjak107
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Re: The Chapwood Index - The Real Cost of Living Index
All the questions are answered on the cpi website and i have to admit the answers do make sense. No there is no such thing as subing hamburger for steak either in the index.
Why would you think a price index should match your personal cost of living? As i mentioned our rent increases were zero. So who should the index reflect ?
Yes rents are included. I suggest you read the answers to the why on the site before crying foul ,it does make sense why the changes.
As well as understand the cpi is a price change index not a true cost of living index.
Why would you think a price index should match your personal cost of living? As i mentioned our rent increases were zero. So who should the index reflect ?
Yes rents are included. I suggest you read the answers to the why on the site before crying foul ,it does make sense why the changes.
As well as understand the cpi is a price change index not a true cost of living index.
Last edited by mathjak107 on Thu Oct 01, 2015 6:52 pm, edited 1 time in total.
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MachineGhost
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Re: The Chapwood Index - The Real Cost of Living Index
I've read the answers from BOL before and I find them convincing, yet I'm still not convinced because personal experience as reflected in the Chapwood Index aligns.
CPI just seems to be a convenient way for the government to screw people over. What do they have to worry about inflation? They get six figure salaries, cushy pensions, SS and guaranteed lobbying jobs after "service". Schumer lives high on the hog.
CPI just seems to be a convenient way for the government to screw people over. What do they have to worry about inflation? They get six figure salaries, cushy pensions, SS and guaranteed lobbying jobs after "service". Schumer lives high on the hog.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
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mathjak107
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- Joined: Fri Jun 19, 2015 2:54 am
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Re: The Chapwood Index - The Real Cost of Living Index
our personal experiences as to cost of living are going to be very different than just a price change index representing 1500 different mini economy's .
a cost of living is determined by the price change x how much of the item we use , which will vary for each of us from zero to a lot x the quality factor of the item we buy . k-mart jeans have way lower price increases then designer jeans . higher end products are effected by inflation more .
personal spending patters will be different too . i am diabetic so i can only buy certain products where as you can buy a wider variety of products that might be on sale .
our food bills are way higher since i am diabetic because of the restricted list of foods i have to buy regardless of price .
a cost of living is determined by the price change x how much of the item we use , which will vary for each of us from zero to a lot x the quality factor of the item we buy . k-mart jeans have way lower price increases then designer jeans . higher end products are effected by inflation more .
personal spending patters will be different too . i am diabetic so i can only buy certain products where as you can buy a wider variety of products that might be on sale .
our food bills are way higher since i am diabetic because of the restricted list of foods i have to buy regardless of price .