>> I have a stupid question regarding the CPI and real wages. My understanding is that real wages are today essentially where they were in about 1972 or so. I also am under the impression that "real wage" is obtained by taking the wage and discounting by the CPI. >> Not stupid, just a little unspecific. Median wage, average wage, urban, rural, CPI, CPI-UX, etc. etc. For free answers, check out epinet.org. >> One: Is this correct? If not, how are "real wages" calculated? Two: Has the CPI been adjusted since 1972 to take into account quality improvements in, e.g., automobiles? I could swear that it has always been regularly adjusted, but a co-worker thinks otherwise. >> The CPI is adjusted to a fare-thee-well for this and numerous other things. Reference: Getting Prices Right, by Dean Baker for EPI (book, costs $). mbs Bill
