Richardson_D wrote: >I ran some numbers for you from Jan., 1978 through Jan., 1997, the >longest period for which BLS has the required series with integrity. > The CPI increased by 154.6% over that period while "Tuition and Other >School Fees" increased by 327.7% and "New Vehicles" were up 95.1%. > The price of the vehicles increased by 143.9% but this was somewhat >mitigated since 33.9% of the increase was considered due to quality >improvements. No quality adjustments were made to Tuition. > >It is somewhat difficult to comment on you numbers without more >specific references. However, as I remember it, the decline in the >real hourly wage (your 16% is what I remember) refers to the median >wage while the Consumer Expenditure Survey results refer to the avenge >household. Since the income distribution has gotten much more unequal >recently, the average has increased faster than the median. The >result is that it takes the median family the income from more work >hours to purchase what the average family purchases. The "new car" series is the "average blended import/domestic" from the trade association formerly known as the Motor Vehicle Manufacturers Association, which has a new name that escapes me right now. The "new house" comes from the Census Bureau. My point was not to discredit the BLS's figures by any means. I was saying that by measuring the wage unit against the costs of actual important items, the evidence is that the CPI understates inflation, if anything. Doug -- Doug Henwood Left Business Observer 250 W 85 St New York NY 10024-3217 USA +1-212-874-4020 voice +1-212-874-3137 fax email: <mailto:[EMAIL PROTECTED]> web: <http://www.panix.com/~dhenwood/LBO_home.html>
