Comments on: It’s still the economy, but we’re not stupid http://themoderatevoice.com/20022/its-still-the-economy-but-were-not-stupid/ An Internet hub with domestic and international news, analysis, original reporting, and popular features from the left, center, indies, centrists, moderates, and right Mon, 28 May 2012 18:13:00 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: bellisaurius http://themoderatevoice.com/20022/its-still-the-economy-but-were-not-stupid/comment-page-1/#comment-137381 bellisaurius Sat, 31 May 2008 21:52:38 +0000 http://themoderatevoice.com/politics/economy/inflation/20022/its-still-the-economy-but-were-not-stupid/#comment-137381 Actually, the CPI looks even better (comparing 1980's and 1990's) if you take into account the percentages for food, fuel and neccessities, as they take up a smaller proportion of our budgets, so an increase of 100% in fuel is more like a 1-5% increase in our total budget. <br><br>I think this bears out in the data. The doubling of fuel prices since last year has dropped use by less than a percent (actually probably a bit more, since there are more cars on the road). It may be hurting at the edges, but society as a whole hasn't been hurt enough to react correctly yet. Actually, the CPI looks even better (comparing 1980's and 1990's) if you take into account the percentages for food, fuel and neccessities, as they take up a smaller proportion of our budgets, so an increase of 100% in fuel is more like a 1-5% increase in our total budget.

I think this bears out in the data. The doubling of fuel prices since last year has dropped use by less than a percent (actually probably a bit more, since there are more cars on the road). It may be hurting at the edges, but society as a whole hasn't been hurt enough to react correctly yet.

]]> By: Jim_Satterfield http://themoderatevoice.com/20022/its-still-the-economy-but-were-not-stupid/comment-page-1/#comment-137380 Jim_Satterfield Fri, 30 May 2008 23:27:19 +0000 http://themoderatevoice.com/politics/economy/inflation/20022/its-still-the-economy-but-were-not-stupid/#comment-137380 The old system would have to have some adjustment for those things, true. But how often do you have those expenses? How well does the current system weigh things like that against ongoing expenses such as food, fuel, type of housing expenses, car insurance and health insurance? The old system would have to have some adjustment for those things, true. But how often do you have those expenses? How well does the current system weigh things like that against ongoing expenses such as food, fuel, type of housing expenses, car insurance and health insurance?

]]> By: pacatrue http://themoderatevoice.com/20022/its-still-the-economy-but-were-not-stupid/comment-page-1/#comment-137379 pacatrue Fri, 30 May 2008 18:42:40 +0000 http://themoderatevoice.com/politics/economy/inflation/20022/its-still-the-economy-but-were-not-stupid/#comment-137379 Very interesting, thanks! Very interesting, thanks!

]]> By: bellisaurius http://themoderatevoice.com/20022/its-still-the-economy-but-were-not-stupid/comment-page-1/#comment-137378 bellisaurius Fri, 30 May 2008 18:12:59 +0000 http://themoderatevoice.com/politics/economy/inflation/20022/its-still-the-economy-but-were-not-stupid/#comment-137378 Wouldn't it be inappropriate to use the old system because the weighting for the CPI is different now? I mean, I didn't own a computer back in 1980, so determing the inflation related expenses to my budget that exist now (interenet costs and computer costs) are completely different now. <br><br>Example: Back then, I might buy a VCR for $500, today, the same item is $100, maybe, even less for the replacement, a DVD player. That's hugely deflationary. Wouldn't it be inappropriate to use the old system because the weighting for the CPI is different now? I mean, I didn't own a computer back in 1980, so determing the inflation related expenses to my budget that exist now (interenet costs and computer costs) are completely different now.

Example: Back then, I might buy a VCR for $500, today, the same item is $100, maybe, even less for the replacement, a DVD player. That's hugely deflationary.

]]> By: Jim_Satterfield http://themoderatevoice.com/20022/its-still-the-economy-but-were-not-stupid/comment-page-1/#comment-137377 Jim_Satterfield Fri, 30 May 2008 17:44:52 +0000 http://themoderatevoice.com/politics/economy/inflation/20022/its-still-the-economy-but-were-not-stupid/#comment-137377 One of the key things that we have never developed a way to track is underemployment. A few years back I was talking to the guy helping me at Best Buy and it turned out his previous job was as a network engineer. Often I hear apologists for the status quo talk about people leaving their jobs working for other people to start their own business. They never seem to grasp that doing that because it's what you wanted to do is not the same thing as doing it because you were fired and can't find another job. In addition the question of pay and benefits offered by either the new jobs or being self-employed is often ignored. All jobs are not equal. Simple unemployment figures are just this side of meaningless nowadays. One of the key things that we have never developed a way to track is underemployment. A few years back I was talking to the guy helping me at Best Buy and it turned out his previous job was as a network engineer. Often I hear apologists for the status quo talk about people leaving their jobs working for other people to start their own business. They never seem to grasp that doing that because it's what you wanted to do is not the same thing as doing it because you were fired and can't find another job. In addition the question of pay and benefits offered by either the new jobs or being self-employed is often ignored. All jobs are not equal. Simple unemployment figures are just this side of meaningless nowadays.

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