Gullible suburban mother of four regularly duped in her half-century life. Exploring hoaxes and schemes as the ExSCAMiner, she attempts answering the nagging question: Should I have fallen for that? Got scam tips, email Karin at ScamExaminer@gmail.com.

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In government we trust?

2 comments

June 24, 2:26 PM

by Karin Malchow, Scam Examiner

www.ShadowStats.com

Mark Twain popularized the phrase, "There are three kinds of lies: lies, damned lies and statistics."

When official government statistics like the Consumer Price Index indicate inflation is not really that bad, some may wonder, "So, is it just me -- and everybody else I know -- paying a lot more for stuff than we used to?"

John Williams of Shadow Government Statistics points out that the government has changed the method of calculating CPI figures, especially within the last fifteen years, lowering inflation figures significantly.

Originally, the Consumer Price Index took a theoretical basket of consumer goods, comparing prices for the same items over time. Seems logical.

Then policy makers decided that in hard times, instead of comparing the price of steak to steak, the price of yesterday's steak should be compared to the price of today's hamburger. The rationale: People won't be buying steak anymore since they can't afford it. Ultimately, this adjustment became a mathematical weighting system having even less to do with comparing actual steak prices.

Were these changes a political ruse limiting Social Security or cost-of-living payment increases tied to the Consumer Price Index? Or do experts refining complicated systems just make us scratch our heads when results conflict with common sense?

Depends on whether you think politicians scam the public. With government approval ratings approaching all-time historic Gallup Poll lows, that's probably a lot of people. Of course, those are statistics.

Disclaimer: The Scam Examiner does not have a degree in economics, but has noticed prices going up. If you want to figure out data, go to www.bls.gov/CPI/

Topics: CPI , government , inflation , statistics

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Hurricane damage continues with recovery fraud

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