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To: ancient_geezer
The methodology for annually adjusting the poverty level, is multiplying 1969 adopted values of poverty level by CPI then publishing the results in the Federal Register. Knowing CPI anyone can test the current value for test of validity as published then challenge an erroneous, arbitrary, or fraudulent value in the Courts.

The problem with using CPI (presumably CPI-U? There are several different values of "CPI" that are produced by the bureau of labor statistics) to calculate poverty level is that it simply adds an additional level of indirection to the manipulation. The CPI itself is subject to manipulation, such as substitution of the price of generic drugs for name-brand prescriptions, something the BLS did in January of 1995 along with other changes to the CPI calculation.
1,046 posted on 11/12/2002 4:21:43 PM PST by Technogeeb
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To: Technogeeb
BLATANT LIE
1,047 posted on 11/12/2002 4:42:08 PM PST by Principled
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To: Technogeeb

 

The problem with using CPI (presumably CPI-U? There are several different values of "CPI" that are produced by the bureau of labor statistics)

CPI-U is specified as the standard measure.

The CPI itself is subject to manipulation, such as substitution of the price of generic drugs for name-brand prescriptions, something the BLS did in January of 1995 along with other changes to the CPI calculation.

Hmmm!, an automatic downward adjustment, to the FCA and costs of government. The political tendency is to understate inflation, just the opposite of what you have been claiming must happen.

No administration wants a glaring admission of inflation raising interest rates, inhibiting stock & bond markets, and depressing economic numbers, for folks to get stirred up about.

Understate the inflation rate too far and you get economic numbers that look like recessions or deflation with the Feds pounding interest rates into the ground, getting constituents sore because their hard earned dollars don't buy as many diapers and milk as it used to for not having kept up with the true value of inflation, getting banks and venture capital folks angry for loosing value on loans to the real inflation in the economy. Guess who gets blamed?

Either condition tends to loose elections for encumbants. Once again your $150,000 wild bureaucrat's arbitrary adjustment show's itself for the vaporware it is.

1,051 posted on 11/12/2002 6:39:33 PM PST by ancient_geezer
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