Question 13.1 Click on this link http://www.bls.gov/cpi/ Note that the data in the “Latest
Numbers” section are expressed in non-seasonally adjusted (NSA) terms and
seasonally adjusted (SA) terms. This accounts for the fact that some goods
(like fruits and vegetables) are always less expensive when they are in season.
Which other non-food items might predictably cost more at some points in the
year than others? Why would this be important? Question 13.2Click on each of these articles. http://www.heritage.org/library/backgrounder/bg1177.html http://www.brook.edu/dybdocroot/views/testimony/triplett/19980429.pdf Note that these papers come from
research institutions with vastly different political viewpoints but come to a
similar conclusion; the CPI is flawed. Given this, and given the consequences
of fixing the CPI expressed in the text (higher taxes, lower Social Security
benefits) which of the concerns, accuracy or fairness, is more important. |