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How does the government compute inflation?
How accurate is the current method? What are some alternative methods?
I beleive they take what is called a "basket" of consumer goods and track the rises and falls of their prices. You will notice that they often give a standard inflation rate and another that does not include changes in gasoline prices for comparison. The consumer price index is a component that measures inflation based on a basket of goods for example. Check out this linke for an inflation calculator provided by the government.
I've seen people link to this web site as an alternative to government inflation statistics in the U.S.: http://www.shadowstats.com/alternate_da … ion-charts
But I don't know how credible those numbers are. The 1980-based chart seems especially hard to believe.
by John4 years ago
How do you think cutting the federal spending will help the economy?
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So far we have the tax increase on the middle class that was not suppose to happen, major increases in health insurance premiums which was not suppose to happen, no even approach for the fiscal cliff, Obama threatens no...
by crazymom34 years ago
What is the government doing to pay off the national debt? How is it being paid off?
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